Tax Season is upon us again!
Though Tax Day is ordinarily April 15, it is on April 18 this year. This unusual occurrence is due to April 15 falling on Saturday with the following Monday being the observance of Emancipation Day. Emancipation Day celebrates the end of slavery in Washington D.C., and commemorates the day that Abraham Lincoln signed the Compensated Emancipation Act on April 16, 1862. As a legal holiday in D.C., Emancipation Day impacts tax deadlines equivalently to a federal holiday and is always celebrated on the weekday closest to April 16—Monday, April 17, this year.
The Internal Revenue Code of 1954 changed the tax filing deadline from March 15 to April 15, and it has been so ever since, unless the April 15 falls on a weekend or a holiday, as is the case this year.
So, in 2023, taxpayers have until Tuesday, April 18, to ensure that all of their documents are in order and taxes are filed for 2022!
It is best to be prepared early with all of the necessary documents, and if you need to obtain statements from Ambassador Advisors, it is not too early to ask! In fact, requesting them early gives us ample time to get them to you and saves you from the last-minute scramble of trying to obtain what you need the week before the deadline. It also gives you time to make 2022 tax-year contributions to an IRA, if you have not yet met the yearly limit. Previous year contributions are possible until tax filing or tax day.
It is also the perfect time to evaluate your finances and discuss the best ways to give to churches or charities close to your heart with your advisor. Not only is supporting charities an act of generosity and stewardship with the resources God has given you, but it also may be financially savvy in the long run when it comes to your taxes.
Depending on the type of donation and what organization you contribute to, there’s a good chance that a significant portion of your charitable donations may be tax-deductible, saving you money. You may also be able to make a gift “in kind” of appreciated assets. which can be tax advantageous when there are capital gains. Your advisor can help you explore the best options to maximize your savings as you support the causes that you care about.
Contact Ambassador Advisors today to discuss your charitable giving and to ensure that Tax Day will not leave you frazzled. We can help you evaluate prior-year retirement contributions to possibly even reduce taxable income before you finally have to file! There is no need to stress – file your taxes early and enjoy the benefits of being organized and prepared.
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