Important Federal Tax Tasks for Individual Taxpayers by April 15, 2024

  • File an income tax return (Form 1040) for 2023 and pay any tax due. You can request an automatic 6-month extension to file, but this does not extend your deadline to pay any tax due.
  • Make the first installment payment of 2024 estimated tax.
  • Last day to make contributions to an IRA, Roth IRA, HSA, Archer MSA, or Coverdell ESA for 2023.
  • *Some parts of the country impacted by severe weather qualify for federal disaster area relief which may extend the deadline beyond 4/15/2024. These areas include Spokane, Washington; San Diego, California; and parts of: Michigan, West Virginia, Maine, Rhode Island, Connecticut, Tennessee, Alaska, and Hawaii. Check with your CPA to see if you are eligible for an extended deadline if you reside in one of these areas.

Maximizing Deductions and Credits
One perennial question on every taxpayer’s mind is how to maximize deductions and credits to minimize tax liabilities. Emphasizing the pivotal role of record-keeping, we’ll delve into the significance of tracking income, deductions, and expenses. Furthermore, early, and comprehensive discussions with tax advisors before the year-end offer a strategic advantage, enabling taxpayers to make informed decisions and potentially modify expenses for optimal tax benefits.

Managing Tax Burden for Self-Employed Individuals
Self-employed individuals face a unique challenge as they no longer have withholding payments for federal or state taxes. This section will shed light on effective strategies for managing their tax burden. Planning and making estimated tax payments or quarterly tax payments become essential to avoid significant tax bills on deadlines like April 15th or October 15th. Tax advisors play a crucial role in assisting self-employed individuals in determining the correct amount of estimated payments based on their income and expenses.

Overlooked Tax Breaks
Businesses often overlook valuable tax breaks that can significantly impact their financial landscape. We’ll spotlight such opportunity: Research and Development (R&D) tax credits, which reward businesses based on innovative activities and cost segregation, a strategy that accelerates depreciation deductions. By understanding and leveraging these tax breaks, businesses can unlock substantial benefits.

The Power of Communication and Proactive Management
In the realm of tax filing, effective communication between tax experts and clients is paramount. Our conclusion emphasizes the importance of staying connected with tax advisors throughout the year. Regular updates and discussions about income, expenses, and estimated payments can help individuals and businesses avoid surprises and, more importantly, maximize available tax benefits.
A proactive approach to tax planning is key. By implementing strategic measures, maintaining open communication with tax advisors, and staying vigilant about income and expenses, businesses and individuals can navigate the tax landscape successfully, minimizing surprises and maximizing benefits.

For more tax tips, click to listen to Tax Insights, on SingerLewak’s “The Balancing Act

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