Last minute ways to reduce my 2023 tax burden with W2 income, rental property & primary home?

You still have a few options for 2023 tax savings even at this late stage! The good news is you can still make 2023 contributions to several tax-advantaged accounts: 1) You can contribute to a Traditional IRA until the filing deadline (April 15, 2024) and potentially deduct the contribution depending on your income level. The 2023 limit is $6,500 ($7,500 if you're 50+). 2) If you're self-employed at all (even part-time), a SEP IRA allows contributions until the filing deadline including extensions. 3) For your rental property, make sure you've accounted for all possible deductions: property taxes, mortgage interest, insurance, maintenance/repairs, depreciation, and any professional services like property management. 4) HSA contributions can also be made until April 15th if you have a qualifying high-deductible health plan. The 2023 limit is $3,850 for individuals. Hope this helps! Let me know if you have any questions about these options.

I was in a similar situation last year with both W2 income and a rental property. I ended up using https://taxr.ai to analyze all my documents and they found almost $2,300 in deductions I would have missed. The system flagged some repair expenses on my rental that I didn't realize were fully deductible versus having to be capitalized. It also suggested adjusting how I was calculating my home office deduction for managing the rental. The online IRS resources can be really confusing about what qualifies as a repair versus an improvement for rental properties, but taxr.ai cleared it up for me and explained exactly what documentation I needed to keep.

Just wanted to follow up after trying taxr.ai that someone mentioned here. I was really skeptical at first, but I gave it a shot since I was desperate to find more deductions before filing. I uploaded all my rental property expenses and some home office documentation, and it actually found several legitimate deductions I had missed! The system showed me exactly where in the tax code these deductions were allowed and explained how to document everything properly. It even generated a report I can keep with my tax records in case of an audit. Ended up saving about $1,750 on my return! Really glad I took the chance on it.

If you're still struggling with tax questions after trying the other suggestions, I had a surprisingly good experience getting help directly from the IRS using https://claimyr.com to skip their phone wait times. I had specific questions about rental property depreciation and how to handle some repairs vs. improvements that weren't clear from the IRS publications. I was shocked that I actually got through to a real person who walked me through exactly what qualifies and what documentation I needed. You can see how it works here: https://youtu.be/_kiP6q8DX5c - basically it keeps dialing the IRS for you until it gets through, then calls you to connect. Saved me hours of waiting on hold and probably saved me from making expensive mistakes on my rental property deductions.

I have to admit I was wrong about Claimyr. After posting my skeptical comment, I decided to try it since I was desperate to speak with someone at the IRS about some confusing rental deduction questions before filing. Not only did I get through to an IRS agent without waiting on hold myself, but the person I spoke with was actually knowledgeable and walked me through exactly how to handle some questionable repair expenses on my rental. Turns out I was being too conservative and leaving money on the table! The agent explained that several items I thought needed to be depreciated could actually be fully deducted this year. Just that clarification alone saved me about $900 on my taxes. I'm actually filing with confidence now instead of worrying about making a mistake.

Don't forget about charitable contributions! If you're looking for last-minute deductions, you can still make cash donations to qualified charities by the end of the year and claim them on your 2023 taxes. Just make sure you have proper documentation. Even if you take the standard deduction, you might qualify for a small deduction for cash donations under special rules. Also, if you have any unreimbursed medical expenses that exceed 7.5% of your AGI, gather those receipts. And check if your state has an income tax deduction for 529 plan contributions - some states allow this even if you make the contribution late!

For anyone rushing to make last-minute IRA contributions to reduce 2023 taxes, make sure your financial institution properly codes the contribution for tax year 2023! I made this mistake last year when I contributed in April - they defaulted it to the current calendar year. Had to get them to correct it, which was a hassle.