ITHACA, NY (CortacaToday) — As the year draws to a close, November is the perfect time to make sure both your personal and business finances are in order. Tax season is fast approaching, and the decisions you make now can have a significant impact on your financial health. Here are some essential tax tips for both individuals and business owners to help you end the year on a strong note. For business owners:

1. Get your books in order:

Keeping accurate records is crucial, especially as the year comes to a close. November is the ideal time to review your business’s financial statements, make any necessary adjustments, and prepare for filing year-end taxes. Organized books not only simplify tax preparation but also ensure you’re capturing all potential deductions.

2. Corporate Transparency Act:

A new requirement under the Corporate Transparency Act goes into effect this year, with a December 31st deadline. This federal law mandates certain small businesses to report their ownership information to the government. Non-compliance can result in significant penalties, so make sure your business is prepared to meet this requirement by the end of the year.

3. Year-end taxes:

For small business owners, now is the time to identify any last-minute tax-saving opportunities. Consider purchasing equipment or prepaying expenses if you’re looking to reduce taxable income. Review your profit and loss statement and work with a tax advisor to maximize deductions before filing. For individuals:

1. Max out your 401(k):

One of the best ways to lower your taxable income is by contributing to your 401(k) plan. For 2024, the contribution limit is $22,500 for individuals under 50 and $30,000 for those 50 and older. By maxing out your contributions, you not only set aside more for retirement but also reduce your tax liability.

2. Health Savings Account (HSA):

If you have a high-deductible health plan, don’t forget to contribute to your Health Savings Account (HSA). Contributions are tax-deductible, and any growth or withdrawals for medical expenses are tax-free. You can contribute up to $3,850 for individuals or $7,750 for families in 2024, so take advantage of this tax-advantaged account.

3. Charitable contributions:

Charitable giving is a great way to give back, and it can also help lower your taxable income. Donations made to qualified charities are deductible, but make sure you obtain receipts for any contributions. Whether you’re donating cash or non-cash items, giving before December 31st can help reduce your tax burden. Bottom line: By following these tax tips, both individuals and business owners can ensure they’re making the most of their financial decisions as the year winds down. Preparation now can lead to significant savings in the upcoming tax season. For a more personalized tax consultation, reach out today to Sprague & Jackson. You can give us a call or visit www.sprjac.com for more information!