Tax Tips for 2025....          

 2024 Tax Filing Season may be upon us, but it is also time to look at ways to potentially reduce your taxes moving forward, even if many tax laws are currently in flux.. Here are a few ideas.

 

 

 

 

Maximize Retirement Savings

2025 Contribution Limits - Take advantage of the current tax savings and future growth.

 IRA - $7,000 with a $1,000 catch-up contribution for those 50 and over.

SIMPLE IRA and SIMPLE 401(k) - $16,500 with a catch-up contribution of $3,500.

401(k), 403(b), 457(b), Roth 401(k), and Roth 403(b) - $23,500 with a $7,500 catch-up contribution of $7,500 for ages 50 -59 and $11,250 for ages 60 -  63
  (if the plan allows).

Contribute to both

If you are taking part in your company's retirement plan you may also be able to contribute to a regular or Roth IRA. IRA tax deductions are limited by income. Consult your tax advisor or Maxwell Shmerler & Co. for the details pertinent to your tax position

Retirement account funding deadline

For the 2024 tax year, a contributions can be made up until the due date of the return (not including extensions)

Charitable Contributions and other deductions

Cash and Non-cash contributions - know the filing requirements

  Cash contribution limit for most contributions is 60% of adjusted gross        income.  

Both Cash and Non-cash contributions (such as clothing and household items) have specific record keeping requirements.For any contribution of $250 or more you must obtain and keep in your records a contemporaneous written acknowledgment from the qualified organization indicating the amount of the cash and a description of any property other than cash contributed.

You must fill out one or more Forms 8283, Noncash Charitable Contributions and attach them to your return, if your deduction for each noncash contribution is more than $500. If you claim a deduction of more than $500, but not more than $5,000 per item (or a group of similar items), you must fill out Form 8283, Section A. If you claim a deduction of more than $5,000 per item (or a group of similar items), you must obtain a qualified appraisal of the item or group of items and fill out Form 8283, Section B. If you claim a deduction of more than $500,000 for a contribution of noncash property, you must fill out Form 8283, Section B, and also attach the qualified appraisal to your return.

 

 
 

Charitable Contributions and other deductions