The year is almost coming to a close. With the few months left in 2022, here are a few basic planning tips that can help you minimize taxes. It is recommended that you consult with a tax professional for more detailed and customized guidance.

Make sure you paid enough taxes for the year. No one wants to see a surprise tax bill in April, so now would be the best time to check to see if you are withholding enough taxes. If you are an employee, check your income tax withholdings and compare them to your income and the tax due on the IRS tax table. If you are self-employed, in addition to income tax withholdings, you should take into account self-employment tax which is 15.3% for the first $147,000 of your business income and 2.9% for income above that. You could also be subject to an additional Medicare tax if your income is above $200,000 for single filers or $250,000 for joint filers.

If your withholdings are not enough, you have a few months to make a final estimated tax payment which is due on January 15, 2023.

Give some clients a break until the new year. For self-employed people, you may have some customers or clients who might be struggling to pay your bill. For trustworthy clients who promise to pay your bill in the new year, instead of suing them into debt slavery, you might want to take them up on their offer. By getting paid and reporting the income in 2023, you will be able to take advantage of the higher tax brackets and possibly pay less taxes on the same income.

This should not be confused with clients who offer payment, which you decline solely for tax avoidance reasons. First, the clients might issue you a 1099 for the amount they paid so you will have to report the income anyway. But also, if you are audited, the IRS could consider this as constructive receipt of the income in the year you earned the money.

Buy that SUV now to get the 100% write off. Normally, for major business asset purchases that are expected to last more than one year, a portion of the cost of the asset can be deducted from income over a period of years depending on the type of asset. But for certain qualified property, the bonus depreciation rule allows them to deduct up to 100% of the cost so long as it is put in service in the same year it is bought.