Tax Surprises Next Year? Not Around Here!
As we enter the last quarter of 2024, here are some items you may want to update to be prepared for the upcoming tax season.
Individuals who make extra income from tips will want to get an idea as soon as possible of the tax implications to date. Now may be the best time to save extra funds just in case!
1099 contractors should be looking at their income to date and estimate for the last quarter. Combined with their total expenses, this is another group of individuals who need to ensure they are saving for taxes since they are not withheld like a W-2 employee.
If you are a W-2 employee, now is a good time to look at your current withholdings, additionally looking at the W-4 that was filed, and adjusting based on life changes, like new additions to the family.
Using a tax withholding estimator can be a great resource when determining your tax liability for the year for all situations listed above.
For 2024, the IRA tax deduction is capped at $7,000. Now is a good time to check out your contributions to date and adjust as needed.
While all of these apply to federal taxes, it is also important to check out the state side if you reside where state income tax is taken out, like in Georgia.
Quick recap of situations that will impact your taxes
Income changes
New job
Marriage status changes
New child or adoption
Purchasing/selling large assets like a house
