Is It Time For You To Do A Tax Checkup?

By Gale Lark Last updated Sep 4, 2023

You may be missing out on chances to minimize your tax and avoid certain penalties if you put off worrying about your taxes until the end of the year or until tax-filing season.

The following are examples of occurrences that may have an influence on your tax return, and you may want to take precautions now to avoid having to take corrective action later with the help of a Sterling Heights, MI CPA.

Have you tied the knot, parted ways, or lost a spouse?
Have you or your spouse recently changed jobs?
How would you characterize the change in your income over the past year?
Did you make a lot of money selling stocks or bonds?
To what extent have you transacted in the rental property market?
Did you find, buy, or part with a company?
How about a property purchase or sale?
How about retirement?
If you are at least 70.5 years old, have you started taking money out of your IRA?
Do you plan to make use of the IRA charitable rollover provision (if you are 70 1/2 or older)?
Have you taken out a second mortgage or refinanced your current property this year?
What kind of inheritance did you receive this year?
Is there a new member of your family? It is time to think about opening a 529 college savings plan.
Do you have all the money you need saved for retirement?
Have you recently invested in any major pieces of machinery for your company?
Do you intend to get rid of the old company car and replace it with a new one?
Do you have proper records of the money and other items you have given to charity?
Have you considered making a large charitable donation all at once this year so that you can use the standard deduction next year when your itemized expenses are lower?
Do you or a family member contribute financially to a higher education?
Do your quarterly tax payments reflect your actual financial situation, or do you need to make adjustments?
Did you purchase your health insurance plan from a government-run exchange and use a premium tax credit to lower your out-of-pocket costs? You may have to refund a portion of the subsidy if your income increases after receiving it.
Do you receive a sizable amount of money from investments or from the sale of investments? If so, you may need to revise your estimated tax payments to account for the 3.8% surtax on net investment income.
Have you ever taken money out of a retirement account or pension plan when it was unnecessary?
Does your organization’s current structure allow you to take advantage of the 20% qualifying business income deduction?
Have you arranged with your employer to engage in an accountable reimbursement plan for work-related expenses incurred in 2018 through 2025 that are not tax deductible?
Have you kept up with every nuance of the ever-evolving tax code?
Have you arranged with your employer to engage in an accountable reimbursement plan for work-related expenses incurred in 2018 through 2025 that are not tax deductible?
Have you kept up with every nuance of the ever-evolving tax code?

Scheduling a tax checkup and consulting with this office may be in order if you expect or have already encountered any of the aforementioned events or conditions, ideally before any of the events listed and certainly before the end of the year.