The IRS article below suggests reviewing your withholding and estimated tax payments to ensure you are not underpaid and potentially subject to penalties in the 2024 tax year.  Underpayment penalties are based on standing interest rates during the quarter in which the payments were due; with interest rates increasing, the penalties will be higher than in previous years.  
  
If you would like to look at your projected taxes for 2024 to ensure you are covered and incorporate any possible changes, please contact your tax advisor to discuss and start the process.

Additionally, now is a good time of year to do your state of Arizona tax credits.  The maximum annual credit amounts for 2024 are as follows: 

Foster Care Tax Credit:

• $587 (single or head of household)
• $1,173 (married filing jointly)

Qualified Charitable Organizations:

• $470 (single or head of household)
• $938 (married filing jointly) 

Public School Tax Credit:

• $200 (single or head of household)
• $400 (married filing jointly) 

Private School Tax Credit:

• $1,459 (single or head of household)
• $2,910 (married filing jointly) 

AZDOR provides a list of qualifying charities, schools and STOs on their website. Please be sure to confirm that your desired institution is on the approved list:  https://azdor.gov/tax-credits

Corporate Transparency Act- Mandatory Reporting

For taxpayers that have entities registered with any state government agency (such as the Secretary of State, Arizona Corporation Commission or an equivalent State organization), you will be subject to the reporting rules of the Corporate Transparency Act and should file your Beneficial Ownership Information (BOI) Reports prior to December 31st, 2024. This can be done on the FinCen.gov website.  Our office will not be preparing these reports. Many of our clients have engaged their attorneys to file these reports on their behalf if not done online. The penalties for not filing are onerous. 

Wishing you all a wonderful holiday season!