Year-end tax planning for individuals – how to maximize your clients’ savings

As the year draws to a close, add value to the services you provide with last-minute opportunities to lower your client’s tax liability or boost refunds. With expertise in the latest tax laws, you’ll guide clients in areas such as deductions, capital loss utilization, retirement account contributions and HSA contributions.

Below, you’ll find a few of the top questions from a recent webinar on the topic and their accompanying answers. If you choose to attend the on-demand version of this webinar, you can access the full recording and the entire list of Q&As.   

Q: If an employee wants to contribute to an HSA in 2023, does the account need to be set up by Dec. 31, 2023, or can it be set up when making the contribution between January and April of 2024?

A: The account just needs to be opened by the filing deadline, April 15, when making the contribution.

Q: Can employees who don’t have an HSA through their employer open an HSA on their own and contribute to it?

A: Yes, but only if they have an HDHP. That’s the key.

Q: How long is the carry over for solar credits?

A: The carryforward is indefinite. While the credit itself does not expire on Dec. 31, 2034, it does not apply to property placed in service after Dec. 31, 2034 [§25D(h)].

Q: You can prepay next year’s property taxes if you make the payment by Dec. 31 this year, but wasn’t that the idea behind SALT?

A: In general, yes. However, taxpayers can only deduct property taxes that have been assessed. For example, many states assess the taxes in December but say they can be paid the following year. Taxes assessed in December and paid in December are deductible in that year. If the property taxes were paid in the following year, they will be deducted in that year.

To learn more about year-end tax planning for individuals, you can watch our on-demand webinar. NATP members can attend for free, depending on membership level! If you’re not an NATP member and want to learn more, join our completely free 30-day trial.