Last-Minute Tax Filing Tips for Individuals in New Jersey
The income tax season for the tax year 2022 ends April 18, 2023. While most have already wrapped up their 2022 tax return, some are still a work in progress. The last-minute rush leads to added stress, costly mistakes on your tax return, and lost dollars. But worry not! Our last-minute tax filing tips can help you stay sorted and prepared for the upcoming Tax Day – while helping you save some cash along the way.
1 Gather and Organize All Your Tax Documents and Financial RecordsMake sure you have all the necessary documents you need to file your taxes. This includes your W-2s, 1099s, and any other income documents and tax break receipts. Use your last year’s return as the starting point and ensure you have all the required documents to prepare your individual tax return. An expert tax consultant can help you stay sorted and prepared.
2 Maximize Your ContributionsDouble-check your return for deductions. Have you utilized your tax breaks to their full potential? If you have some cash in hand, max out your contributions for maximum tax savings. Here are some last-minute ideas to reduce your taxes:
- Make an IRA contribution: The last date to make an IRA contribution is 18th April. So make the most of it. If you haven’t maxed out your IRA contribution, do it now. You can contribute up to $6,000 individually and an extra $1,000 in catch-up contributions if 50 or older.
- Contribute to your health savings account: You can even reduce your tax liability by contributing to your health savings account (HSA). The contribution limit is $3,650 for individuals and $7,300 for families. People 55 and above can add an extra $1,000 to their contributions.
- Add side hustle expenses: In case you forgot it, your side hustle can save you some taxes too. So, if you have incurred an expense to start or sustain your side business, make sure to deduct the amount from your income.