2023 Smart Tax Planning for Next Year

2023 Smart Tax Planning for Next Year

  • If you faced unexpected taxes this year, it's wise to start preparing for next year's taxes now.

  • As of April 14, the IRS processed 76 million refunds, averaging $2,840, 8.5% lower than last year.

  • Refunds result from overpayment throughout the year, while tax bills arise from underpayment.

Analyze Your 2022 Return:

  • Understand the reasons behind unexpected tax bills from the previous year.

  • Differentiate between one-time income spikes and recurring side hustle earnings.

  • For recurring income, adjust withholdings or make estimated tax payments to lower next year's bill.

Evaluate Withholdings:

  • If 2022 brought higher-than-expected taxes, review your 2023 paycheck withholdings.

  • Modify the number of allowances or increase withholdings on Form W-4 through your employer.

  • Calculate adjustments by dividing extra 2022 tax paid by remaining 2023 paychecks.

Reassess Your Investment Portfolio:

  • Now is a great time to review your investment portfolio's tax implications for next year.

  • Optimize asset placement among brokerage, tax-deferred, and tax-free accounts.

  • Income-producing assets (bonds, certain funds, real estate trusts) may lead to taxable events in brokerage accounts.

Consider tax rates:

  • You could qualify for the 0% long-term capital gains rate for 2023 with specific taxable income thresholds.

Prepare for the Changing Tax Landscape:

  • Learn from this year's tax experiences and take proactive steps for a more tax-efficient future.

  • Strategically adjusting withholdings and optimizing your investment strategy can lead to substantial tax savings.

  • Planning ahead ensures you're well-prepared to navigate the intricacies of the tax system and avoid surprises.

Here's how we can assist you:

  • Personalized Tax Analysis:

    We start by gaining a deep understanding of your unique financial situation and goals. Our team analyzes your income, investments, assets, and liabilities to develop a personalized tax favorable investment strategy that minimizes your tax liability while maximizing your financial potential.

  • Strategic Planning:

    Whether you're an individual looking to optimize your deductions, manage capital gains, or plan for retirement, or a business aiming to reduce your tax burden through strategic deductions and credits, we create comprehensive plans tailored to your specific needs.

  • Year-Round Guidance:

    Our support doesn't stop at tax season. We provide year-round guidance to help you make informed financial decisions that align with your tax strategy. This proactive approach ensures that you're prepared for your meeting with your selected tax professional or CPA.

  • Business Tax Planning:

    For businesses, we offer specialized financial planning and retirement plan strategies to help you minimize your tax liability while maintaining compliance. Our experts can guide you in areas such as retirement plan selection, employee benefits and strategies, employee financial planning education, and tax-efficient business retirement plans.

  • Investment Tax Efficiency:

    We work to optimize your investment portfolio to align with your tax goals. By strategically managing investments in tax-advantaged accounts and considering tax-efficient investment strategies, we aim to enhance your after-tax returns.

  • Estate and Succession Planning:

    Our services extend to estate and succession strategy planning, where we assist you in creating a comprehensive plan and strategy that minimizes estate taxes and ensures a smooth transition of wealth to your heirs.

  • Keeping Abreast of Planning Changes:

    Tax laws are constantly evolving. Our team stays up-to-date with the latest tax financial planning strategies, allowing us to adapt your plan to any changes that could impact your financial situation.

  • Peace of Mind:

    With Sun Group Wealth Partners by your side, you can rest assured that your financial planning is in capable hands. Our goal is to provide you with peace of mind, knowing that you have a dedicated team working to optimize your personalized situation while helping you achieve your financial objectives.

At Sun Group Wealth Partners, our commitment is to empower you with the knowledge and strategies needed to navigate the complexities of tax planning, ultimately helping you secure a stronger financial future.

Sun Group Wealth Partners is a registered representative with, and securities offered through LPL Financial, member FINRA/SIPC. Investment advice offered through Sun Group Wealth Partners, a registered investment advisor and a separate entity from LPL Financial.