Josh Mullins - The Journal Record
Jan 16, 2024
Now that we are into 2024, let’s discuss a few things that you should keep in mind as you begin assessing how 2023 went and how you want the new year to go.
Now that we are into 2024, let’s discuss a few things that you should keep in mind as you begin assessing how 2023 went and how you want the new year to go. Below are a few ideas that you should keep in mind when you are considering the tax planning side of your financial goals for 2024.
One of the things many people don’t consider doing regularly is checking on their tax withholding status. Generally, employees fill out a new W-4 when they start a new job, however, if you have had any family changes during the past year you should consider updating your W-4 with your employer.
Some examples could be your family size has changed due to the birth or adoption of a child or maybe your college age children are now out on their own. Either way you might be under or over withholding income taxes. If you or your spouse changed your job status and now you are a multi-job household or maybe you have gone from a multi-job household or a single job household, you should consider updating your W-4 to help the accuracy of your withholdings for 2024.
It’s also that time of year to consider if your benefits package is up to date with your most recent status. This is especially helpful when you are considering your retirement planning. What options do you have for tax savings opportunities with retirement accounts? What does your employer do with respect to matching?
If you have recently received a raise or a bonus, or if some of those life events discussed earlier have happened, should you begin to take advantage of or adjust what your savings are so that you are better planning for your future. The importance of this type of planning is more important than ever. The more you save earlier in your life, history shows, the larger your nest egg will be as your approach retirement. Also, keep in mind that the amount individuals can contribute to their 401(k) plans in 2024 has increased to $23,000 in 2024 and that the amount that can be contributed to an IRA has increased to $7,000 in 2024 as well.
Also, keep in mind that for Oklahoma state income taxes, you can contribute to an Oklahoma 529 plan and for a single return you can receive a maximum deduction of $10,000 and for a joint return a deduction up to a maximum of $20,000 depending on the amount you contribute into those accounts in 2024. You might also be able to take advantage of the Oklahoma Parental Choice Tax Credit and receive a tax credit for tuition paid to private schools or costs related to homeschooling in Oklahoma.
There are many things to consider when updating your financial plans and goals for this year and tax planning around them with some of these simple items can provide valuable benefits as you move forward. Have a great 2024!
– Josh Mullins, CPA, is a partner at Arledge, the largest locally owned accounting firm in the Oklahoma City metropolitan area. Arledge is a recognized leader in the accounting industry, offering practical solutions in the areas of tax planning, auditing, consulting, accounting advisory services and client accounting.