TAX PLANNING: NOW MORE IMPORTANT THAN EVER
If you haven’t scheduled a tax planning session, it’s not too late yet. Now is the great time to try and minimize your taxes for 2023. Here's how a tax planning session can potentially help your situation:
⏰ IT CAN MAKE A DIFFERENCE
If you have a major event that occurs during the year, this is especially true. Example:
Starting a business? Lower your taxes every year by choosing the correct entity.
Selling a house? When primary residence requirements are met, you can avoid necessary taxes.
Preparing for your retirement? There will be a huge impact on your tax liability when you properly balance the different revenue streams such as part-time wages, Social Security benefits, IRA distributions and many more.
Note: When planned in advanced, external forces like new tax laws can be managed even in uneventful years.
⏰ PUT YOURSELF IN CONTROL
Bundling multiple years of charitable contributions into one year can create an opportunity to itemize deductions. It is very important to understand the rules of timing when it comes to minimizing taxes.
Timing is often in your control and holding investments for longer than one year to get a lower tax rate, and making efficient retirement withdrawals are other examples of prudent tax strategies that you control.
⏰ FOR EVERY LEVEL OF INCOME, THERE ARE TAX PLANNING OPPORTUNITIES
Even if you claim the standard deduction, tax deductions are available for student loan interest, IRA contributions and other situations. Even if you don’t owe taxes, certain tax credits called refundable credits will help increase your refund. Missing any of these tax breaks can unnecessarily increase your taxes.
⏰ THE CONSTANT CHANGES OF THE TAX LANDSCAPE
A tax planning session can help you understand what deductions are and are not available for your particular situation. Because new laws are passed almost every year, this may mean that there are certain new tax deductions that can be beneficial for you. This may also mean an existing deduction you had been used to taking is no longer available.
⏰ YOU HAVE HELP
The best place to start is to bolster your level of tax knowledge by picking up the phone and asking for assistance. Tax planning comes down to looking for ways to reduce taxable income, delay a tax bill, increase tax deductions, and take advantage of all available tax credits.
THE 2024 SOCIAL SECURITY CHANGES
THE AVERAGE BENEFITS OF ALL WORKERS & MAXIMUM BENEFITS FOR WORKERS RETIRING AT FULL RETIREMENT AGE
SOCIAL SECURITY REVENUES & EXPENDITURES
Source: 2023 Annual Report of the Board of Trustees of the Federal Old-Age and Survivors Insurance and Disability Insurance Trust Funds, Table II.B1.
2024 SOCIAL SECURITY & MEDICARE TAX RATES
SOCIAL SECURITY PAYMENTS EXPLAINED
MAXIMUM SSI PAYMENTS FOR INDIVIDUALS & COUPLES
HOW DOES SOCIAL SECURITY WORK?
HOW TO QUALIFY FOR RETIREMENT BENEFITS?
CHECK YOUR SOCIAL SECURITY EARNINGS
Source: SSA.gov
Contact us and let our skilled OAHU Tax Experts offer their well-rounded tax advice and tailored tax solutions to help you file accurate tax reports. Diamond Head Tax Group is Honolulu's trusted source of tax filing services serving Waianae, Honolulu, Kapolei, Oahu and surrounding areas.
We are available to assist you with your Tax Needs.
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