Year-End Tax Tips

1. Review your portfolio. Consider harvesting losses to offset your capital gains.
2. Max out your retirement plan contributions. The 2023 maximum IRA contribution is
$6,500 (plus $1,000 if age 50 or over) and you can make 2023 IRA contributions until
April 15, 2024. The 2023 maximum 401(k) contribution is $22,500 (plus $7,500 if age
50 or over).
3. Tell your CPA about home energy improvements to take advantage of increased energy
credits, even if you were told you had maxed out in the past. Changes have removed
lifetime limits!
4. Consider contributing to a 529 Plan for college. New York allows a deduction up to
$5,000 (or $10,000 for married filing joint) for contributions made by a resident account
owner to an account belonging to New York’s 529 College Savings Plan. Not a NY
resident? Other states offer similar perks to residents, check with your state.
5. Save receipts for medical supplies and equipment such as prescriptions, doctor co-pays,
dental expenses, insulin testing supplies, canes, braces, orthotics, eyeglasses, contact
lenses and hearing aids, etc. Medical expenses that exceed 7.5% of AGI are deductible if
you itemize.
6. If you’re self-employed, try accelerating expenses before year end. Stock up on supplies
you will need in the new year or pre-pay some expenses.
7. Make charitable donations and be sure to get a receipt. Both cash and non-cash donations
to a registered charity will get you a deduction. Consider bunching donations every other
year to exceed the standard deduction for more tax savings. Make sure you have
documentation, receipts and acknowledgements as necessary.
8. If you turned age 73 in 2023, make sure you take your required minimum distributions.
You have the option to defer your first RMD until April 1 of the following year, but if
you do so, you will need to take 2 RMDs in one year for 2024.
9. Over 70 ½ and required to take RMD’s? Make a Qualified Charitable Distribution
(QCD) to a qualified charity. It counts towards your RMD, helps charity and reduces
your taxable income!
10. The current $12.92 million estate tax credit is set to drop to about $7 million after 2025.
Taxpayers with sizeable estates may consider giving gifts in 2023, 2024 and 2025 to
reduce their estates. The IRS has said that these gifts would not be affected if the credit
is reduced after 2025.

Honorine M. Campisi, CPA