As we near the end of 2023, a little bit of planning could help you find ways to reduce what you owe in taxes come April. Here are seven things to consider.
1. Check your filing status
Big life changes such as births, deaths and marriages can greatly affect your tax filing status — and tax bill. If you had a child, for instance, you might now be able to claim new tax breaks like the child tax credit on your upcoming return.
If your child turned 18 and aged out of certain benefits this year, or if you experienced a change in marital status, that can impact things, too.
There are five Internal Revenue Service (IRS) filing status categories to choose from:
Single filers: Unmarried people who don’t qualify for another status.
Head of household: An unmarried person who is financially responsible for a qualified child or adult family member.
Married filing jointly: Most married couples file this way.
Married filing separately: Another option for married couples, sometimes used by higher earners.
Qualified widow(er): Someone who has lost a spouse and is caring for a child at home.
View the entire article on nerdwallet.com.