Tax Tips
Remain on track with these mid-year updates:
Updates and looking forward
Expires 12/31/2025 Energy Efficient Home Improvement Credit - up to $3,200
- Product Identification Number (PIN) from manufacturer required
Expires 12/31/2025 Residential Energy Credit - 30% credit for:
- Solar panels & battery storage
- Solar water heaters & Geothermal heat pumps
Expires 12/31/2025 Clean Vehicle Credits
- $7,500 new and $4,000 used plus charger credit
The incoming BBB bill does not eliminate tax on social security
Avoid penalties with greater withholding on W-2 and social security, or quarterly estimates
High-deductible health insurance? An HSA can help with a triple tax advantage
Volunteer and keep your expenses and mileage records
Planning for a child’s education? A 529 college savings plan has many benefits
Going back to school? Ask your employer about tax-free educational assistance and the working-condition fringe benefit in Section 127 of the Internal Revenue Code
Give a $19,000 tax-free gift - Available for both spouses to give up to $19,000 to each child
Retirement and Investing
Additional cash on hand outside of your IRA? Consider double tax-exempt municipal bonds
- Interest exempt from Federal and Minnesota income tax
- 14 Best Muni Minnesota Mutual Funds
Stay up to date on ways to maximize your IRA and pensions
Look to avoid capital gains tax by harvesting losses to offset realized gains
Donor Advised Funds (DAF) are becoming increasingly popular for large charitable giving
Asset allocation by institution and account type may increase your SIPC / FDIC protections
Business tips
Take advantage of your vehicles tax savings. Track mileage and maintenance / repair costs
Salary deferral for SIMPLE IRA pensions up to $19,500 with over 50 catch-up, 3% employer match fully deductible
Keep records of cash spending and periodically review these resources:
www.sba.gov/local-assistance/resource-partners
www.irs.gov/newsroom/small-businesses-find-tax-resources-and-tools-on-irs-dot-gov