#6 Paying 2023 Bills Now
Take a look at your medical bills. You might be able to write off your unreimbursed medical expenses if you have a sufficient amount. Unreimbursed medical expenses are only deductible to the extent they exceed 7.5% of your adjusted gross income. That makes this tax advantage unavailable to the majority of taxpayers, but you might be eligible if your medical expenses were exceptionally high this year as a result of a serious illness or a chronic disease, like long-term COVID.
Prepay your property taxes. State and local taxes paid up to $10,000 can be written off by itemizers. Pay the January property tax bill due in December if your town permits it and you haven’t reached your year maximum so you can deduct it from your 2022 taxes.
If you are a parent of a college student, you may be able to cut your tax bill in 2022 by paying the first quarter’s tuition in advance. You are not required to itemize in order to qualify for this tax credit. The American Opportunity Tax Credit is worth up to $2,500 for each eligible student and can be claimed by those who are enrolled in their first four years of undergraduate school.Â
Married couples who file jointly and have a modified adjusted total income of up to $160,000 are eligible for the full credit, while those who have a MAGI of up to $180,000 are only eligible for a portion of it.
