Your ultimate end-of-year tax checklist

Review your deductions and compile receipts.

‍Use the Keeper app or website to quickly review business expense deductions. Most of these won’t require receipts, but it’s generally best practice to have them handy for business meals, travel, and large (> $75) cash expenses.

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Calculate estimated tax payments to avoid penalties.

Use our quarterly tax calculator to quickly gauge whether you owe quarterly tax payments for 2024. If you do, you can make a payment now to avoid penalties at tax time. Payments can be made directly with the IRS for free, or through Keeper for Premium subscribers.

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Check on any outstanding invoices due to you.

Not only is it good to get paid on time, it’s also important for tax reasons - outstanding invoices should be reported as income so you’ll pay tax on them even if you haven’t received the money yet. The person or entity that owes the invoice is also incentivized to get it done before the end of year because it’s a deductible expense.

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Ask directly-paid contractors for their SSNs.

Anyone you paid this year directly over $600 you’ll have to issue a 1099 tax form. To do this, you’ll need their social security number. You can file the 1099s yourself or reach out to have Keeper do it for you (additional fees). Note that this only applies to direct bank transfers, not payment platforms like PayPal Zelle or Upwork.

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Tax loss harvesting.

If you have both investments that increased in value and other investments that decreased in value, you can engage in tax loss harvesting. To do this, you’ll need to match the gains and the losses to avoid any capital gains tax. Ask Keeper to learn more.

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Max out your 529 contributions.

If you or your kids have educational expenses (like school tuition), a 529 plan gives you serious deductions and credits. Most banks offer one and it’s easy to sign up. Ask Keeper to learn more.

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Backdoor Roth IRA / Solo 401k contributions.

High-income earners can utilize the backdoor Roth IRA strategy to contribute to a Roth IRA indirectly. This involves making a non-deductible contribution to a traditional IRA and then converting it to a Roth IRA. Similarly, consider maximizing contributions to a Solo 401(k) if you're self-employed, which can significantly reduce your taxable income. Ask Keeper to learn more.

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Spend any unused FSA dollars.

If your health insurance is compatible with a Flexible Spending Accounts (FSA) remember to "use-it-or-lose-it". Schedule any last-minute eligible medical expenses or purchases, such as prescription eyeglasses or dental work, to avoid forfeiting your pre-tax dollars. Ask Keeper to learn more.

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Use your $18K gift tax exemption.

You can gift up to $18,000 (as of 2024) per recipient annually without incurring a gift tax. This is a great opportunity to minimize your taxable estate by gifting cash or assets to children, family, or friends. Ask Keeper to learn more.

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Setup an S-Corp if your net income > $100K.

If your business generates net income exceeding $100,000, consider creating an S-Corporation. This can potentially save you on self-employment taxes by allowing you to pay yourself a reasonable salary and distribute remaining profits as dividends, which aren't subject to the same taxes. Reach out to have Keeper do this for you.

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Put your kids on payroll (for legit work).

Wages paid to kids under 18 are generally exempt from income taxes -- so it functions like a “free deduction”. Just make sure your kid earned less than the standard deduction, and that the work is legitimate and pay is reasonable for the tasks they perform! Ask Keeper to learn more.

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Take advantage of the savers credit.

The Saver's Credit is designed to reward low to moderate-income taxpayers ($35K - $75K household) for contributing to retirement savings plans such as IRAs or employer-sponsored plans like 401(k)s. Doing so will reduce your tax bill by up to $1,000 (or $2,000 if filing jointly). Ask Keeper to learn more.

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