Reducing the amount of tax and the taxable state for 2023 by taking action.

is $13,850 for single individuals, $27,700 for spouses filing a joint return, and $20,800 for heads of household (taxpayers who are over age 65 or blind get an additional standard deduction). These levels are higher than before the Tax Cuts and Jobs Incentives Act (TCJA), which reduced the number of taxpayers itemizing their deductions. However, "itemizing" certain expenses can help you get a higher amount of itemized deductions. Accumulation consists of recording an accounting expense so that it accumulates in a particular tax year and the total amount exceeds the standard deduction. Likely candidates include:

• Medical and dental expenses that exceed 7.5% of your''GIVINGM.

  Numerous strategies allow you to increase the amount of charitable contributions to your accounting deduction. For example, you can donate appreciated assets that you've owned for at least one year. In addition to avoiding capital gains tax - and, if applicable, investment income tax - on growth, you can take into account the fair market value of the donated investments. Keep in mind that the limitations based on the IRS apply to deductions for charitable contributions. While this will not affect the deduction for charitable contributions, you may also be interested in making a Qualified Charitable Distribution (QCD) from a Required Minimum Distribution (RMD) retirement account. You''You can distribute up to $100,000 per year (indexed annually for inflation) directly to a qualified charitable organization after age 70.5. The distribution does not count toward the charitable contribution deduction, but it is excluded from your taxable income and treated as RMD.

  PAY YOURSELF, NOT TAXS

  Whenever possible, you should generally maximize annual contributions to savings accounts that can reduce your taxable income, including 401(k) accounts, traditional individual retirement accounts, health savings accounts (HSAs) and 529 plans. The limits for 2023 are:

  • Traditional 401(k) accounts: $22,500 ($30,000 for those over age 50).
  • Traditional individual retirement accounts: $6,500 ($7,500 for individuals''over age 50).
  • HSA accounts: $3,850 for single-person coverage and $7,750 for family coverage (individuals over age 55 can contribute an additional $1,000).

  The 529 plans have various gift tax, state income tax deduction and specific plan limitations. Since you will be able to roll over unused amounts to the beneficiary's Roth IRA (Roth Individual Retirement Account) starting in 2024 (subject to certain restrictions and requirements), contributing to 529 plans has become even more attractive.

  ISPAY YOUR PROFITSG/h3>

  Financial markets, which are constantly changing this year, may provide an opportunity to utilize your 'losing' investments that are worth less than their original value, and''Use losses to offset your capital gains. If losses exceed your capital gains for the year, you can use the excess to offset up to $3,000 of ordinary income and pass the remaining losses forward.