PHOENIX — If you filed an extension for your 2023 taxes back in April, the clock is ticking to get them done, with the Oct. 15 deadline now just a week from tomorrow.
On this Money Saving Monday, 12News has some cash saving pointers on how you can save money with tax deductions.
“Hectic, stress, negative,” said Kiernan Daley, a Gilbert business owner.
Those are just a few of the things many people feel when it comes time to file their taxes.
“Get it away from me,” he said. “That’s most people’s reaction.”
For Daley, it’s something that had been weighing on him.
"Absolutely, if it wasn’t categorized properly, then those numbers could be off and now I’m owing more than I need to and it’s just a nightmare,” he said.
But after getting a couple years behind on filing his taxes, he got connected with Jim Ross with ProVision in Phoenix.
Ross was able to pull transcripts from the IRS and helped him get caught up.
“It was a huge relief,” said Daley,
“You better be thinking about getting your taxes done now,” said Ross.
That’s his message to anyone who filed an extension for their 2023 taxes in April. And not just to get them done ASAP, but also to think about all the ways you can save money at the same time with tax deductions.
“Have you gotten your charitable contributions? Have you claimed your out-of-pocket medical costs?” said Ross. “Do you have health savings account contributions? Have you made IRA contributions?”
He knows all the ins and outs when it comes to the most commonly deducted items.
“…mortgage interest, real estate tax,” he added.
Ross recommends going back over what you did last year and having a checklist.
“If you are planning ahead and especially, if you have, for example a small business, as a lot of folks do… we are now in a gig economy – the side hustle – there’s lot of tax deductions that you can get to help offset that 1099 income,” said Ross.
In Daley’s case, by writing off a list of expenses as tax deductions, he was able to help lower the amount he owes on his income tax.
“…the vehicles, the tools, things we need on a regular basis, you know, hardware… any expenses, the uniform I’m wearing now for myself and my employees,” said Daley. “Luckily I didn’t have to owe.”
He didn’t only get up to speed, but ahead.
“Roughly over $8,000 already, so that was definitely helpful for us,” he said.
If you requested the six-month extension to file your 2023 tax return, mark your calendar. It must be filed by next Tuesday, Oct. 15.
For more information on other credits and deductions you can use to help lower your tax bill or increase your refund, just go to this page.
If you have any Money Saving Monday ideas you would like to share with us or any topics you want us to cover, be sure to email us at money@12news.com.