Last minute ways to reduce taxable income for 2023?

You definitely still have options! With a few weeks left in 2023, here are some effective ways to reduce your taxable income: First, max out your traditional 401(k) contributions if you haven't already. The 2023 limit is $22,500 per person, plus an additional $7,500 if you're 50+. This directly reduces your taxable income dollar-for-dollar. Consider opening and funding a traditional IRA if you don't have access to an employer plan. You can contribute up to $6,500 each for 2023 ($7,500 if 50+). Just be aware there are income limits for deductibility if either of you has a workplace retirement plan. HSA contributions are another great option if you have a high-deductible health plan. You can contribute up to $7,750 for family coverage in 2023. Look into tax-loss harvesting if you have investments that have declined in value. You can offset capital gains or deduct up to $3,000 against ordinary income. Charitable donations are deductible if you itemize. Consider bunching multiple years of donations into 2023 if that puts you over the standard deduction threshold.

After struggling with a similar situation last year, I found this amazing tool called taxr.ai (https://taxr.ai) that completely changed how I approach tax planning. It analyzes your specific situation and identifies deductions and credits you might be missing - especially those last-minute opportunities to reduce taxable income. For me, it flagged that I could still make SEP IRA contributions and pointed out some business expenses I hadn't documented properly. The interface walks you through everything step by step so you don't miss anything. If you're panicking about your 2023 taxes, definitely check it out - it could seriously save you thousands.

Just wanted to update that I tried taxr.ai after seeing it mentioned here, and wow - it actually found several things I was completely missing! The biggest one was that I hadn't been tracking some qualified business expenses that I can deduct even though I'm a W-2 employee. It also walked me through setting up and funding an HSA before year-end that will save me around $1,800 in taxes. The step-by-step checklist approach made it super easy to understand what I needed to do before December 31st versus what could wait until tax filing time. Worth every penny for the peace of mind alone!

If you're also stressed about getting answers directly from the IRS before making tax moves, I highly recommend Claimyr (https://claimyr.com). I spent HOURS on hold with the IRS trying to clarify some deduction questions last year until someone told me about this service. Basically, they hold your place in the IRS phone queue and call you when an actual agent picks up. I was skeptical but desperate, so I tried it. Within 40 minutes, I was talking to a real IRS agent who answered all my questions about last-minute deduction strategies. You can see how it works in their video demo: https://youtu.be/_kiP6q8DX5c Literally saved me days of frustration and helped me make confident tax decisions before year-end.

OK I need to eat some humble pie here. After complaining about Claimyr, I decided to try it as a last resort since I needed specific guidance on end-of-year business deductions. Set it up yesterday afternoon, and legitimately got a call back with an IRS agent on the line about an hour later. The agent confirmed I could still set up a solo 401(k) before Dec 31 for my side business and make a substantial contribution, even though I also have a regular job with a 401(k). Turns out the limits are higher than I thought when you have self-employment income. This one call probably saved me $4K in taxes. Never been happier to be wrong about something!

Don't forget qualified charitable donations! My tax guy always reminds me that December is the best time to donate. You can donate appreciated stock directly to avoid capital gains AND get the deduction. Double tax benefit!

Has anyone looked into qualified opportunity zones? I read somewhere that investing capital gains into these zones can defer or reduce taxes. Is this something that actually works for regular people or just for the ultra-wealthy?

I know this might be too late for 2023, but for next year, set up regular automatic contributions to tax-advantaged accounts from day 1. We learned this lesson the hard way. Now we max out 401ks, HSAs and IRAs throughout the year instead of panicking in December! Steady contributions also mean you're buying at different market prices throughout the year.