Last minute 2023 tax savings strategies with W2 income and rental property?
Running out of time here! What last minute things can I still do to lower my 2023 tax burden before the filing deadline? I've got just a few days left and I'm trying to figure out if there's anything I can still do. I'm a standard single W2 employee, have one rental property that's been doing okay (nothing amazing), and own my primary residence. I didn't really plan ahead for tax season like I should have, but wondering if there are still some moves I can make to save on taxes for 2023 in these final days?
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Giovanni Colombo
You still have a few options to reduce your 2023 tax burden even with just days remaining. The good news is that several tax-saving strategies can be implemented right up until the filing deadline! For your situation as a W2 employee with rental property, consider making a traditional IRA contribution which can be done until the filing deadline. For 2023, you can contribute up to $6,500 ($7,500 if you're 50+), potentially lowering your taxable income significantly. For your rental property, review all possible deductions including any repairs, maintenance, or improvements you made in 2023 that you haven't already accounted for. Make sure you're capturing all eligible expenses like property management fees, insurance, mortgage interest, and depreciation. As a homeowner, you might also qualify for energy-efficient home improvement credits if you made any qualifying upgrades to your primary residence in 2023.
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Fatima Al-Qasimi
•Does contributing to an HSA also work last minute? I have a high deductible health plan but never thought about using it for tax savings until now.
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Giovanni Colombo
•Yes, HSA contributions are another excellent last-minute tax saving option! If you had a qualified high deductible health plan (HDHP) in 2023, you can still contribute to your HSA until the tax filing deadline. For 2023, the contribution limit is $3,850 for individual coverage or $7,750 for family coverage, with an additional $1,000 catch-up if you're 55 or older. The HSA contribution is an above-the-line deduction, meaning you get the tax benefit even if you don't itemize deductions on your return. Plus, the money grows tax-free and can be withdrawn tax-free for qualified medical expenses, making it triple tax-advantaged.
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StarStrider
After spending hours trying to figure out all my rental property deductions and potential last-minute tax savings, I found this AI tool called taxr.ai that saved me so much time. I was in a similar situation with a rental property and W2 income, and wasn't sure if I was missing anything. I uploaded my tax documents to https://taxr.ai and it analyzed everything, finding over $2,300 in deductions I would have missed for my rental - things like partial home office expenses for managing the property and some travel costs I didn't realize were deductible. It also suggested making that last-minute IRA contribution that the previous commenter mentioned.
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Dylan Campbell
•Does it actually work with rental properties specifically? I've tried other tax tools but they seem to miss a lot of the rental-specific deductions.
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Sofia Torres
•I'm skeptical about using AI for my taxes. How does it compare to just using a regular tax service? Does it actually know all the tax laws or is it just making guesses?
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StarStrider
•Yes, it works really well with rental properties specifically. It identified several rental-specific deductions I would have missed, like a portion of my cell phone bill used for tenant communications and some mileage expenses for property visits. It seemed much more thorough than general tax software I've used in the past. For your question about AI versus regular tax services, it's not making guesses - it's using the actual tax code and regulations. The difference is it can analyze documents much faster and check against thousands of potential deductions. I was skeptical too, but it cited specific IRS publications for each recommendation. Still, I did verify the major deductions it found just to be sure.
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Sofia Torres
Just wanted to update after trying https://taxr.ai - I'm actually blown away. I was the skeptic who questioned it earlier, but I decided to give it a shot since I was desperate for last-minute tax savings. It found a $1,200 deduction I completely missed related to my rental property expenses! The system flagged that I could deduct some home office expenses for the time spent managing my rental, plus some education expenses from a real estate webinar I took last year. Definitely worth it for last-minute 2023 tax savings when you're up against the deadline.
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Dmitry Sokolov
If you're still struggling to finalize everything and think you might need more time, I'd recommend filing an extension. BUT - and this is important - remember that an extension gives you more time to FILE, not more time to PAY what you owe. Also, if you're trying to reach the IRS with questions about your rental property deductions, good luck getting through the phone lines this close to deadline. I finally got through using https://claimyr.com which got me connected to an actual IRS agent in about 15 minutes instead of waiting on hold forever. I watched their demo at https://youtu.be/_kiP6q8DX5c and it actually worked exactly like they showed.
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Ava Martinez
•Wait, does this actually work? The IRS phone system is a nightmare this time of year. How much does this cost? Seems too good to be true.
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Miguel Ramos
•This sounds like a scam. Why would I pay someone else to call the IRS for me? They probably just put you on hold anyway and then charge you for it.
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Dmitry Sokolov
•Yes, it actually works! The way it functions is pretty clever - they have a system that navigates the IRS phone tree and waits on hold for you. When an actual agent picks up, you get a call connecting you directly to them. The whole point is that you don't have to waste hours listening to hold music. I understand the skepticism completely. I felt the same way initially. They don't just put you on hold and charge you - their system actually navigates the complicated IRS phone menus and waits in the queue for you. When an agent actually answers, that's when you get connected. I was able to get specific answers about rental property depreciation that saved me way more than what the service cost.
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Miguel Ramos
Ok I have to apologize and eat my words. After calling the IRS for 2 HOURS today and getting nowhere, I tried that Claimyr service in desperation. Got connected to an IRS agent in 20 minutes while I was just watching TV. The agent confirmed I could still make a SEP IRA contribution for my side gig income from 2023 (which I do in addition to my W2 job) and that's going to save me almost $1500 in taxes. That's a legitimate last-minute 2023 tax saving I would have missed without getting through to someone who could confirm my situation.
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QuantumQuasar
Don't forget about charitable contributions for 2023! Even though it's 2024 now, if you make a credit card donation before the filing deadline and charge it to your card, you can still count it for 2023 as long as you itemize. Also, check if your state has a 529 plan with state tax deductions. Some states allow you to deduct contributions to 529 plans from your state taxes, and some let you make contributions up until the tax filing deadline.
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Zainab Omar
•Wait really? I can still make charitable donations now that count for 2023? Does this work if I take the standard deduction or only if I itemize?
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QuantumQuasar
•This only works if you itemize your deductions. If you're taking the standard deduction, additional charitable contributions won't help reduce your taxes. The standard deduction for 2023 is $13,850 for single filers, so your total itemized deductions (including charitable contributions, mortgage interest, state and local taxes up to $10,000, etc.) would need to exceed that amount to make itemizing worthwhile. For your 2023 taxes, there's unfortunately no above-the-line charitable deduction available for those taking the standard deduction. That was a temporary COVID provision that has expired.
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Connor Gallagher
For your rental property - if you haven't already done so, review all receipts for repairs vs. improvements. Repairs can be fully deducted in 2023 while improvements need to be depreciated. Also, did you drive to your rental for any reason? Those miles are deductible! Also, since you own your primary residence, don't forget to look into property tax deductions if you itemize. You mentioned being a W2 employee - check if you contributed the max to your 401k if you have one. Unfortunately that's too late to change for 2023, but good for planning 2024.
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Amara Okafor
•Thanks for the rental property tips! I actually did quite a few visits last year but wasn't tracking mileage. Can I estimate it now based on my address and the property address for those trips I know I made?
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Connor Gallagher
•You can use a reasonable estimate based on the distance between your home and the rental property multiplied by the number of trips you can substantiate. Just be prepared to justify those trips if asked - having calendar entries, texts with tenants, or receipts from the same days as your visits can help establish that you actually made those trips. For future reference, it's best to keep a contemporaneous mileage log with dates, starting/ending mileage, and the purpose of each trip. Many people use smartphone apps for this now, which makes it much easier to track.
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