The 2023 tax year has brought with it several changes that professionals and individual taxpayers need to be aware of. Here are some tax planning tips to consider:
Firstly, the standard deduction has been increased for the 2023 tax year, allowing taxpayers to deduct more of their income from taxes. Individuals should consider this when deciding between itemizing deductions and taking the standard deduction.
Secondly, the tax rates for long-term capital gains have remained the same, but the income thresholds have been adjusted for inflation. Therefore, individuals who are planning to sell assets should carefully consider the timing of these sales to optimize their tax situation.
Lastly, professionals who are self-employed or have a side business should consider the benefits of setting up a retirement plan. Retirement contributions can often be deducted from your income, reducing your overall tax liability.
Remember, tax planning is a year-round effort. At T&Y CPA, we can assist you with planning your taxes effectively and staying up-to-date with the latest tax regulations. Contact us for more personalized advice.
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