Your tax season checklist

With tax filing just around the corner, now is a great time to look through your tax filing plan for 2023. Here are some ideas:

• Collect and arrange tax documents by type. Find a place to store tax documents when you receive them, or consider scanning documents to store on your computer. A great way is to take pictures of the documents with your phone as backup. Missing documents — even just one — is a significant reason why filing a tax return is delayed. Documents you’ll need include K-1s, W-2s, 1099s and other forms you receive from your business, employers, brokers, banks and others. If you detect any errors, contact the sender immediately to request a corrected copy.

• Put a due date reminder on your calendar. Mark April 15, 2024, on your calendar as the due date for filing your 2023 individual tax return, and gift tax returns; making contributions to a Roth or traditional IRA for 2023; and for paying the first installment of 2024 individual estimated taxes.

• Remember deadlines for business returns. If you own a business or are in a partnership, the deadline for filing partnership and S corporation returns is March 15. Calendar-year C corporation tax returns are due by April 15. Six-month extensions can be requested for partnerships and corporations.

• Keep great donation records. Cash contributions under $250 require a bank record like a canceled check, credit card record or a receipt from the charity. For larger donations, a receipt from the charity must be obtained before filing your return. Donations of property should include a photo, a receipt from the charity and a detailed listing of the items donated that are in good or better condition.

• Review your child’s income. Your child may be required to file a 2023 income tax return. A 2023 return is generally required if your child has earned more than $13,850, or has investment income such as dividends, interest, or capital gains that total more than $1,250.

• Contribute to retirement accounts. There’s still time to make 2023 IRA contributions — up to April 15, or until you’ve contributed the maximum allowed. That’s the lesser of your earned income for 2023 or $6,500 ($7,500 if you’re 50 or older).

• Calculate your estimated tax if you need to extend. If you file an extension, you’ll still need to do a quick calculation to estimate your 2023 tax liability. If you still owe Uncle Sam any money, you’ll need to write a check by April 15. Remember, filing an extension gives you additional time to FILE your tax return, but not to PAY the taxes you owe.

One of my primary objectives is to help you achieve your financial goals through a holistic approach that is tax-efficient in my wealth management and tax resolution practice. For more information, visit www.fredtfoxiii.com

Fred T. Fox III is a Lawton native who owns his own business.