Getting Ready for Q4 Taxes (Before the Year Sneaks Up on You)
Here's the thing about taxes: most of the ways to lower your bill have a deadline of December 31. Once the new year starts, your options shrink fast. Q4 is your last real window to make moves, so let's talk about what to get done now.
1. Check your estimated tax payments
If you're self-employed or a business owner, you've probably been making quarterly estimated payments. The last one for the year is due in mid-January. Take a look at what you've paid so far and compare it to what you're actually earning. If it's been a strong year, you may owe more than you planned for, and it's much better to know that now than in April.
2. Look at your withholding if you get a paycheck
If you work a regular job (or you and your spouse do), double-check that your withholding still fits your situation. A raise, a new job, a side gig, or a life change can throw it off. Adjusting your W-4 now spreads any catch-up over the remaining paychecks instead of hitting you all at once.
3. Max out your pre-tax accounts
Contributions to a 401(k) generally need to happen by December 31 to count for this year. If you have an HSA, you get a little more time, but don't wait until the last minute. Even small bumps in contributions can lower your taxable income.
4. Think about business purchases
Need new equipment, software, or a vehicle for the business? Timing matters. Depending on what it is, buying and putting it to use before year-end may let you deduct it this year. Just don't buy something you don't need only for the write-off. Spending a dollar to save thirty cents is still spending a dollar.
5. Get your books in order
This is the unglamorous one, but it matters most. Go through your business expenses, categorize anything sitting in the "miscellaneous" pile, and make sure your receipts and records are organized. Clean books now mean a much faster, cheaper, and less stressful tax season.
6. Plan your giving
If you donate to charity, make sure it happens by December 31 and keep your receipts. Donations of goods count too, as long as you document them.
The bottom line
You don't need to do everything on this list. Pick two or three that fit your situation and knock them out this month. And if you're not sure where to start, that's what we're here for. Reach out to our team at 770.529.6300 or mail@1stax.com, and we'll walk through your numbers together.