It’s tax time again. The one time of year that most everyone dreads, because – let’s be honest – who loves paperwork? Other than bureaucrats, nobody!
You get anxious about missing stuff and messing up your taxes. Don’t worry, even though Valentines’ Day is over, here are 5 forget me nots about your taxes for 2023 before you file.
These are deductions that you don’t want to miss, because life gets too busy.
1. Do Not Forget to Tell Your CPA About Your New Kid
You’d be surprised at the number of people that forget to tell their accountant about their new child. You get so busy changing diapers, it slips your mind to tell your accountant so you can save money. Remember, every kid you have lowers your taxes by adding them as a dependent and helps increase the Child Tax Credit. Do not forget about your new kid at tax time.
2. The Dependent Care Credit
If you (and your spouse) work full time, you can get tax credits for childcare for your kids that are under 13. Childcare doesn’t have to be full time care. It also includes before and after school care – such as SafeKey or similar extended school programs that watch your kids while you’re at work. This is an easy one to miss, so don’t forget it.
3. Education Tax Credits
You may be out of college, but still take courses at the university or extension school. Doesn’t matter if it’s online or in person, you can get a tax credit for those courses. Make sure to log into your university or college website and download your Form 1098-T (for tuition) to lower your taxes. Keep in mind, if you make too much money, you may not qualify for the tax credit, but it never hurts to find out.
4. You Still Have Time to Fund Your IRA
You may still be able to fund an IRA. You have until April 15th, and it can still count towards your 2023 tax return. And if you are self-employed, you can fund a SEP IRA or Solo 401(k) all the way up until October 15th.
5. Energy Efficient Home Improvement Credits
Starting in 2023, if you upgraded your home, you may be able to save some money. Improvements like new exterior doors, windows, skylights, insulation, heat pumps, water heaters – all of these are included. However, like everything with the IRS, there are requirements and limits on how much you can get. The maximum you can save on the smaller stuff $1,200, annually. But if you do a large improvement (like install Solar Panels) you can save a lot more! I wrote an article about the specifics. You can read more about it here.