Individuals and small business owners are urged to consider year-end tax planning as the year approaches. Mark J. Kohler, a Certified Public Accountant (CPA) and small business attorney, recently provided valuable insights and advice for navigating the tax landscape in an interview with KING 5.
Filing your 2023 taxes may be the last thing on your mind with Christmas only two days away, but it might be another item to mark off your list before the new year. (Source: King5)
Maximizing Refunds and Navigating Tax Complexities
While the holiday season may be in full swing, Kohler emphasizes the importance of addressing tax-related matters and tax planning before the new year begins. He highlights a crucial aspect for individuals expecting a federal tax refund, noting that overpaying annual taxes or withholding more than the owed amount can result in a refund. According to the IRS, the average refund for 2023 was $3,054 as of October 27. For small business owners, Kohler underscores the significance of documenting work-related expenses. He specifically mentions the benefits of accurately completing a 1099 form, essential for reporting income earned by independent contractors. Properly filling out this form ensures compliance with tax regulations and may contribute to potential deductions for the business.
As individuals prepare for the festivities, Kohler’s advice serves as a timely reminder to include tax considerations in their year-end checklist, helping them navigate the complexities of the tax system and potentially maximize refunds or deductions.
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