September is a perfect time to begin the process of reviewing your year-to-date taxable income and allowed deductions for 2024, as well as projecting your income and deductions for the remainder of the year. We recommend taking a look at your year to date paystub, deductions and other income amounts throughout the year to help manage your specific tax situation. Potential “tax surprises” that may come up when you meet with your tax preparer next winter can often be avoided with planning prior to year-end. Common events to be on the lookout for include:
- A change in your marital status or birth of a child
- Changing jobs at some point in 2024
- Changing your work status from an employee position to being self-employed or vice versa; or starting a private practice or consulting work
- A significant increase or decrease in your private practice income from your original expectations earlier in the year
- Collecting unemployment or taking time off from work and receiving Paid Family and Medical Leave Benefits
- Exercising company stock options
- Buying or selling your primary or secondary residence
- Receiving a large bonus during the year
- Realizing large capital gains
- Collecting social security benefits or retirement RMDs for the first time
- Receiving an inheritance
If any of these items apply to you in 2024, mid-year is the time to think through your planning opportunities. Taking control of your tax situation earlier in the year rather than later or not at all can help relieve the stress of a surprise tax bill next winter. Contact our office at (781) 938-0045 or email your tax preparer to schedule a tax planning meeting and advisory session to discuss your specific tax situation and planning options to consider before year-end.