2023 Tax Strategies Jackson County Taxpayers Should Make Now

 

Resolutions? Really?

 

It’s kind of what you do in January — new year, new goals, new me … right?

 

Well, as someone who’s made resolutions and failed to keep them over many years, I’m all about focusing on what I know is doable. 

 

As your Blue Springs tax pro, I’m of course going to talk about all of this in terms of your tax standing. And I’m not merely talking about filing your 2022 taxes over the next couple months.

 

But, hey – while we’re on the subject, let’s focus on it for just a second. 

By the end of the month, you should have your 1099s and W-2s (K-1s come out by March), and you most likely have other documents that you’ve held onto for deduction purposes as well. What I recommend… 

 

1. Get them organized. 

 

Sure … we can handle the “receipts in a shoebox” thing – but it just means that things take way longer, and you might not always be happy with that result. Getting things organized on your end will ensure my team and I can get everything processed and submitted to the IRS as soon as possible. (And that will probably ensure a better, quicker result on their end.)

 

2. Schedule an appointment with your favorite Blue Springs tax pro (wink, wink) ASAP: https://www.afitonline.com/appointments

Alright, but now that we’re in a new year, it’s time to right the wrongs of 2022 … and as the hoary old cliche goes, the early bird gets the worm.

 

In this case, the person who starts implementing tax strategies at the beginning of the year gets a better tax standing for next year. Okay, so that analogy, not strong… but you get the drift. 

 

Let’s take a look at what you can do now to get ahead in 2023…

 

2023 Tax Strategies Blue Springs Taxpayers Should Make Now
“Start with the end in mind.” – Stephen R. Covey 

 

Welcome to the new year. Everyone likes to talk about having a clean slate, a fresh start, new opportunities. Because I’m a tax pro, I say… let’s talk about taxes.

 

Actually, let’s talk about preparing for taxes aka tax strategies. It’s more fun than taxes themselves (what isn’t?), and it can save you hassles down the road if you start right now at the beginning of the new year.

 

Maybe it seems odd to start the year off by talking about planning for next year’s tax filing. But, actually starting now means things are much easier the rest of 2023.

 

So… what’s the first step in implementing tax strategies? Let’s take a look.

 

Get ready for some paper

 

Everybody’s heard about the shoebox of records (we’ve seen a few, that’s for sure) but you don’t need a master’s in taxation to recognize that as a poor way to get ready to file taxes. 

 

To implement tax strategies, you need to have an idea of what paperwork is involved in reporting to the IRS. This is nowhere near a complete list of the forms you might get, but documents you should get ready to receive: 

 

– W-2 forms for your wages

 

– IRS Form 1099-G (for unemployment compensation, among other things)

 

– 1099-MISC for miscellaneous income, including rent

 

– K-1/1065 for partnership and trust income (these are sometimes late in recent years, but not always)

 

– 1099-R for pensions and annuities, retirement accounts and some other sources

 

– 1099-INT for interest income

 

– 1099-DIV for dividends

 

– 1098 for mortgage interest

 

– SSA-1099/1042S regarding Social Security benefits. 

 

(You might have heard you were also going to get income tax forms if you made just 600 bucks through online selling or a gig job. Thankfully, the IRS put that cute idea on hold for at least another year.) 

 

Go back through 2022 and make a list of all the employers, brokerage houses, and such that may be sending you tax documents. Double-check that employers and institutions that’ll be sending you a tax form have your right address and other details. You’d be surprised what people can mess up … and if they send a tax record to the IRS and don’t file your taxes with it, you’ll have to amend your return later – why take the chance?

 

Most individual taxpayers have everything available by the end of January (most – this can vary depending on your asset and other factors, so stay in touch with us if you think something’s late or missing). By the way, we can’t even start filing federal taxes until the IRS announces their start date.

One challenge these days, of course, is that records come many ways: some by mail, others with an email, or other electronic notice telling you they’re available online.

 

If you need an organizer and we haven’t sent you one or given you access to one online, let us know. Otherwise, get a folder (label it and don’t misplace it) and slip all tax docs in there that come in the mail, as well as printed ones from online.

 

New details for 2023

 

Federal tax information changes every year (they almost seem to delight in changing it …). For starters, Tax Day in 2023 is Tuesday, April 18 since the normal Tax Day, the 15th, is a Saturday and Monday, April 17 is Emancipation Day, a holiday in the District of Columbia. 

Another of the tax strategies to implement is figuring out how much you’ll owe. Scratchpad math will give you an inkling if you’ll owe taxes for 2022. If you paid taxes quarterly in 2022, by the way, you want to wind up owing less than a grand in tax after subtracting your withholdings and credits or pay at least 90% of your tax for the current year or 100% of the tax shown on the return for the prior year, whichever is smaller. If you think you’ll owe money using that formula, try to pay it with your last quarterly filing for 2022, which is due Jan. 17. 

 

This is also a great moment to start budgeting and pre-setting deadlines to pay your quarterly taxes through 2023. 

 

Looking ahead, federal tax brackets were adjusted due to inflation quite a bit for the new year. By looking at these new numbers, you can make another smart move ASAP and make sure you’re having the right amount withheld from your paycheck. Again, we can help, and the good folks at the IRS also have this withholding estimator.

 

Budgeting for other accounts

 

No early-year implementation of tax strategies is complete without considering what you’ll put into your nest egg and other accounts (such as for healthcare spending) that give you tax breaks.

 

In 2023, you’ll be able to kick in more than three grand to a health flexible spending arrangement, for instance. You can put a couple grand more into your workplace retirement plan, up to 22,500 bucks (if you’re older than 50, your catch-up contribution went up, too). The limit on annual contributions to your IRA went up 500 bucks from 2022 to 6,500 dollars. 

 

Again, set a budget and fix your dates to contribute – and you’ll be sitting pretty by early 2024.

 

Tax planning and putting tax strategies into play never really stops despite what the calendar says. You can make plans for your tax situation looking ahead, and we’re always here to advise you.

 

Here for you, 

Mike Mead, EA, CTC

Alliance Financial & Income Tax

807 NW Vesper St

Blue Springs, MO. 64015

816-220-2001

If You Think....

If you think you can claim head-of-household because you moved out of daddy's house and have your own apartment, you might consider using a Blue Springs tax pro.

If you think that because you pay your own bills and support yourself, you are considered a dependent, you might consider using a Grain Valley tax pro.

If you think income doesn't have to be reported because no one sent you a W2, you might consider using an Independence, Missouri, tax pro.

There is much more to tax preparation than what do-it-yourself tax software would have you believe.

So, until they have "Solve Your IRS Tax Problems In A Box," you might consider using a tax professional.

Hire an Enrolled Agent. We can solve your IRS tax problems.

5 Ways to Achieve Financial Freedom

 

Financial freedom is something that everyone strives for, but it can be challenging to achieve. It requires discipline, planning, and a willingness to make sacrifices in the short term for long-term gain. However, with a little effort and the right strategies, it's possible to achieve financial freedom and take control of your financial future.

In this post, we'll explore five ways to achieve financial freedom. From creating a budget and paying off debts to building an emergency fund and investing wisely, these strategies will help you get on track and achieve your financial goals.

1. Create a budget and stick to it.

Creating a budget is an essential step in achieving financial freedom. A budget helps you understand where your money is going and where you can cut back. It's essential to track your spending and make sure you're not overspending in any one area. There are plenty of budgeting apps and tools available to help you stay on track.

2. Pay off your debts.

Debt can be a significant obstacle to financial freedom. It's essential to focus on paying off high-interest debts, such as credit card balances, as soon as possible. This will help you save money on interest charges and free up more money for other financial goals.

3. Build an emergency fund.

An emergency fund is a savings account set aside for unexpected expenses, such as a car repair or medical bill. It's important to have an emergency fund to fall back on so you don't have to rely on credit cards or loans in a pinch. Aim to save enough to cover at least three to six months' worth of living expenses.

4. Invest wisely.

In addition to saving for the short term, it's essential to consider your long-term financial goals. Investing in stocks, mutual funds, or other types of investment vehicles can help you grow your wealth over time. It's never too early to start thinking about retirement, so make sure you're contributing to a retirement account, such as a 401(k) or IRA.

5. Create multiple streams of income.

Having multiple streams of income can help you achieve financial freedom more quickly. This may involve starting a side hustle, investing in real estate, or finding ways to monetize your skills and talents. Diversifying your income streams can help you weather any financial storms that come your way.

Conclusion:

Achieving financial freedom is an attainable goal with the right strategies and discipline. By creating a budget, paying off debts, building an emergency fund, investing wisely, and creating multiple income streams, you can take control of your financial future and achieve the freedom and security you deserve. Remember to stay committed to your goals and be willing to make sacrifices in the short term for long-term gain. With a little effort and planning, you can achieve financial freedom and build a secure and prosperous future.

The Benefits of Hiring an Income Tax Professional

 

Income Tax Professionals: 

What They Do and Why You Need One:

Filing taxes can be a daunting task, but having the right help can make filing your income tax much easier. Income tax professionals are experienced individuals specializing in filing taxes and helping you get the most out of your return. Let’s examine what they do and why you need one. 

What Tax Professionals Do: 

Tax professionals understand the laws and regulations that govern tax filings. They stay up to date on changes in tax laws and know how to apply them to your situation to maximize your return. Tax professionals also have audit experience, should you ever be audited by the IRS. In addition, if you have any legal questions regarding taxation, a qualified tax professional can give you sound advice. 

Why You Need a Tax Professional:

Suppose you are an individual or small business owner. In that case, it is essential to have someone who understands the complex rules of filing taxes to help make sure that everything is done correctly and that you are taking advantage of all deductions for which you qualify. Additionally, many people don’t realize how much help they need until after they’ve started their taxes or received an audit notice from the IRS. Having access to knowledgeable advice from a trusted source before this happens can save time and money in the long run. 

Tax professionals can also provide support beyond simply filing returns each year. Their knowledge of financial planning strategies can help ensure that you are setting yourself up for success financially in the future, as well as reducing your taxable income now. This advice is invaluable when it comes time to retire or make other life decisions with financial implications. 

Conclusion: 

Having a qualified income tax professional on your side can make all the difference when it comes time to file your taxes each year. These experts understand the finer points of taxation law and regulations, allowing them to provide sound advice about filing returns correctly and taking full advantage of available deductions. Furthermore, their knowledge of financial planning strategies can help set up successful financial futures for individuals and small businesses alike! So if you're looking for assistance with filing your taxes this year, consider hiring an income tax professional—you won't regret it!

Tax Preparation & Planning

 

Tax Preparation & Planning

Effective Blue Springs, Missouri, tax preparation and tax planning can help you to minimize your future tax liability. I can help you proactively manage both your personal and your business tax issues, including understanding how upcoming business opportunities impact your tax status and vice versa. Not all tax planning opportunities are readily apparent. By having Alliance Financial & Income Tax on your team, you are more likely to benefit from those opportunities. We understand how the latest federal, state, and local tax legislation and other developments affect you and your business, and I am constantly identifying new ways to reduce federal, state, or local tax liabilities.

It's Tax Time

 

We hope the new year is off to a great start for everyone. We just wanted to touch on a few subjects before tax season gets going. 

We are conducting both in-person and virtual tax appointments.

Our intake forms have been updated and need to be completed before we may prepare your tax returns. This will ensure you do not miss any possible tax credits or deductions. There have been many changes to the tax code in the past couple of years.

We want to make it as easy as possible for you to get your taxes completed. So once you have gathered all the tax documentation, you may:

·  Mail your information to us, and we will contact you with any questions.

·  Stop by the office between 9-5 to drop off.

·  Use our client Secure File Portal

·  Schedule a time for either an in-person or virtual appointment by calling the office or clicking Appointments.

The filing deadline this year for corporate tax returns is March 15th, and for personal tax returns, it is April 18, 2023. To ensure your personal tax return is completed and filed on time, we must receive all your information by April 1st. We will not begin working on your tax return until we receive your information. 

If you require an extension to file, please e-mail Jessica White at jwhite@afitonline.com. There is a $25 fee for processing extensions. (The request must be in writing)

We are here to help, so please do not hesitate to contact us if you have any questions or if we may be of any assistance. 

We are truly thankful for the confidence and trust that you place in us, and we are looking forward to seeing you soon.

 

As always, we are in your corner.

 

Mike Mead, EA, CTC

Julie Naudet, AFSP

WARNING: IRS Audits Rapidly Increasing…

 How Confident Are You That Your Tax Return is Accurate?

Could You Be Missing Potential Deductions?

10 million taxpayers missed out on a chance to receive a bigger refund last year simply because they should have filled out one line on their tax return.  Will you miss a similar opportunity this year?

Today’s tax laws are increasingly complicated, and the rules for deductions and credits change yearly. Are you aware of all the deductions and credits that might be available to you this year, even on the most basic of tax returns? Perhaps you feel secure in your do-it-yourself tax preparation software, but let’s face it… There is no substitute for an experienced tax professional who can answer your questions and ask you the questions that might be key to saving you tax dollars.

With our tax return services, you get the following:

•         Assurance that your return has been checked and double-checked for mathematical accuracy and errors that are commonly flagged by the IRS, resulting in fewer chances for contact by the IRS.
•          Tips for better managing your payroll withholding so that you can have the advantage of greater income all year long, rather than loaning that money to the government and waiting for it to come back in the form of your yearly tax return.
•          A list of common deductions that may benefit you in the coming year and tips for limiting your future tax liability.
•          Electronic filing for a quicker refund.