I hope you had an eventful/pleasant summer. The year is coming to a close FAST. For those that pay estimated taxes the third payment is due within days. If you operate a small business this is the time to review your INCOME AND EXPENSES for the last eight months. Is the results in line with your plan for 2024?
NOW IS THE TIME TO ACT!!
If you are in a profitable position, now is the time of think about adding assets that are needed to help your business grow. Purchase them before year end to take advantage of Section 179.
If your business is struggling, take a good look at your monthly expenses. Can some be lowered or eliminated? Look for duplicators in services. Now is the time to act.
For individual tax payers, the tax brackets have increased for 2024. This means that you may be in a lower tax bracket than last year. For instances in 2023 single filer’s taxable income in the 95,375 – 182,100 range paid at the 24% rate. In 2024 the range has been changed to 100,526-191950. This means that you pay at the 22% rate is you are below 100,526 in 2024. More of your income will be subject to a lower tax rate. All the other tax brackets have also changed.
For those who have your pay directly deposited by your employer PLEASE check your year to date tax withholdings NOW. If they need to be adjusted do it NOW so there are no tax payments needed on April 15, 2025.
If you use a third party payment processor you will probably get a Form 1099-K if the activity is $5,000 or above in 2024. These forms will need to be reported on your 2024 tax returns.
Your tax forms will be in your mailbox in January/February. Keep all forms in one file to report. For my current clients; I will be sending a list for you to check against based on prior years fillings later this year.
Don’t just focus on tax related items. This is a good time to review all parts of your financial life for organization and updates. You should have a listing that includes name of vendor, account number and telephone to reach the vendor/supplier. File this listing in a SAFE place or with a trusted advisor. We never know when the listing will be needed. Life changes and these listings should be reviewed annually for adjustments.
Tax scammers have NO tax season. They are here ALL year; everyday. Do not open e-mails or attachments that you DO NOT recognize the sender. The IRS does not initiate contact by e-mail or request information via e-mail.
If you have questions on this information or I can help you, please don’t hesitate to contact this office at 740-369-9133 or 740-815-4035.