Last Minute Money Moves in 2023 To Help With 2022 Finances

Financial Moves You Can STILL Make 

Tax filers are getting a few extra days this year since April 15th falls on a Saturday and Monday the 17th is a holiday in certain jurisdictions.  So, taxes are due Tuesday, April 18th. There is still time to take some last-minute, small financially beneficial tax strategies if any of the below situations apply to you!

Situation 1: Did you fund a Flexible Spending Account (FSA) in 2022?

An FSA is a great employer-provided option to put money aside for IN-YEAR health and dependent care expenses while reducing taxable income.  Since these are “use it or lose it” accounts, they can be difficult to forecast and fully use and employees collectively annually forfeit more than $3 Billion in funds that are returned to employers![1]  In recognition of this, many plans offer limited exceptions to the year-end requirement. If you have remaining funds in your FSA account, check with your employer to see if any of the below apply to your situation:

  • You may be able to carry over $570 from 2022 to your 2023 balance
  • You may be able to spend 2022 dollars through March 15, 2023
    • Items such as eyeglasses, contacts, and over-the counter medications qualify, to name a few, A quick internet search can provide lists of many other eligible items.
    • You may not “stockpile” items, however; quantities purchased may not be higher than would be reasonably used in a year.
  • You may be able to submit receipts for 2022 expenses as late as March 31, 2023, if you forgot to submit expenses incurred in 2022 for reimbursement.

Note:  Don’t confuse an FSA account with its distant cousin the Health Savings Account (HSA).  We love the HSA account for many, many reasons and discuss it separately below and will devote a brief to that topic later this year.

Situation 2: Do you qualify for a deductible Individual Retirement Plan (IRA) contribution?

Although not as large as deferral amounts for 401(k) and other employer-provided retirement plans, IRA contributions can still help to prepare for retirement and reduce your taxes.  Contribution limits for 2022 are $6,000 or $7,000 for anyone age 50 or above.

On the plus side, when comparing IRAs to employer-based retirement plans, IRAs allow for contributions to be made up to the tax deadline date.  This means you can review your draft tax return and reduce your tax obligation by making a deductible IRA contribution if you qualify:

  • You are not covered by an employer retirement plan
  • Your employer has a retirement plan, but you don’t personally contribute to it and you are not “covered” by it[2]
  • You are covered by an employer’s retirement plan, but your Modified Adjusted Gross Income (MAGI) is below (fully deductible) or within (partially deductible) the below ranges:
Tax Filing Status: MAGI
Single, head of household $68,000-$78,000
Married filing jointly $109,000-$129,000
Married filing separately $0-$10,000
  • You are a non-earning spouse of a covered worker, and you file jointly and your MAGI is below $214,000 (benefit partially phases out between $204,000 and $214,000).

Situation 3:  Do you have earned income from self-employment?

Whether you are fully self-employed or are a W-2 employee with supplemental self-employment income, you are eligible to establish a SEP (Simplified Employee Pension) which allows for significant tax-deferred savings. You can establish and contribute to a SEP up to the due date for your business’ tax return.  (Though establishing a SEP is relatively simple, give yourself a couple of days to do the paperwork).

As the “employer” you can contribute up to 25% of your net earnings to your SEP not to exceed $61,000.  If you are also a W-2 employee of a different business, you can contribute to both your employer plan and your SEP.  Contributions to one do not impact the other.[3]

Situation 4: Did you have a high-deductible health plan (HDHP) in 2022 and underfunded an HSA?

As mentioned earlier the Health Savings Account (HSA) is a great tax and savings tool if you qualify by being enrolled in a high-deductible health plan (HDHP).  As a bonus, you can have more than one HSA account (but contributions are totaled across all HSA accounts) and you can contribute as late as tax filing day meaning there is still time to max out that contribution for 2022.

If you are an individual with a solo HDHP, your 2022 contribution is limited to $3,650, or $4,650 if you are 50+.  If you are on a family HDHP (you plus at least one additional family member) you can contribute $7,300, or $8,300 if you are 50+.  Lastly, if both you and your other family member are 50+ you can each contribute the $1,000 catch up contribution for a total of $9,300.  Note that the second family member must open their own HSA account for their $1,000 contribution.

It’s very important to note that the contribution limits INCLUDE any amount that your employer may contribute on your behalf, so be sure to account for that contribution.

While you may be able to take advantage of these last-minute strategies, by collaborating with a financial planner early in the year, you can develop a tax-efficient plan that considers all aspects of your financial situation. This proactive approach can help minimize your tax liability, increase your overall financial well-being, and reduce the stress and hassle of scrambling to prepare your taxes at year end. So don’t wait until the last minute, set up a call with us today. We’re here to help you make better financial decisions and build a path forward.


[2] This can be tricky as it is impacted by more than your own contributions; see if Box 13 is checked on your form W-2 and/or check with your employer



Washington’s Bi-partisan Inflation Reduction Act (IRA)

Washington’s Bi-partisan Inflation Reduction Act (IRA)

Let it work for you!

While the often caustic rhetoric of the midterm elections was getting into gear in late summer, Washington legislators actually came together and passed the Inflation Reduction Act (IRA) on August 7th  inspiring The Atlantic to call the date “probably the best day for climate action in American political history.”  Now effective since January 1, 2023, there are numerous opportunities to claim federal tax credits (dollar for dollar reductions in your tax bill) while simultaneously making a positive environmental impact. If you’re looking to buy an EV or looking to do some home upgrades these are a must review. We highlight some of the energy-related benefits here.

Considering an EV?

For electric vehicle purchasers, the tax credits can be meaningful (as high as $7,500 per vehicle) but there are also limitations too numerous to cover in this piece including purchaser income limitations.  But, it is absolutely worth reading the requirements to get this significant tax credit!  We urge you to consult the Department of Energy site found here for specific details.

Home Energy Efficiency

For homeowners, many expiring credits were extended and enhanced, and new credits were added. You can reduce your power, heating, and cooling expenses for years to come and save a lot of money on the upfront equipment and installation – greatly reducing the payback timeframe.

For each of 10 years beginning in 2023 and going through 2032, households can claim $1,200 in federal tax credits each year (a total of $12,000!) for certain efficiency upgrades.  This replaces the $500 lifetime cap in tax credits that was put in effect in 2006.

On top of those great credits above, solar tax credits of 30% for materials and installation are higher than the expiring solar credits and are now protected for 10 years.  In addition to the $1,200 annual number, homeowners can also qualify for separately up to $2,000 per installation for heat pumps, biomass stoves and heat pump water heaters .  There’s never been a better time to make your home more energy efficient!

Read the fine print

Caveat….make sure that you confirm with your contractor prior to purchasing any equipment that it meets the specifications needed for the rebates.  Many products need to exceed current Energy Star ratings to qualify for the rebate.

Additional Incentives Based on Income

If your household income is less than 80% of your area’s median income, your rebates can cover up to 100% of your project costs!


Home Energy Upgrades Qualifying for Federal Tax Credits through 2032:

NOT LIMITED: (30% of materials plus installation)
Rooftop Solar

Battery Storage

Solar water heating

Geothermal Heat Pumps

$2,000 MAX PER INSTALLATION: (30% of materials plus installation)

Can be claimed in ADDITION to those subject to $1,200 below

Biomass Stove

Electric or natural gas Heat Pump

Electric or natural gas Heat Pump Water Heater

Windows/Skylights – up to $600 per window

Exterior Doors – up to $250 per door (max 2 doors/year)

Home Energy Audit – up to $150


Central air conditioners

Electric panels and certain related equipment

Natural gas, propane, or oil water heaters

Natural gas, propane, or oil furnaces or hot water boilers

Don’t ignore state incentives:

Many states have tax credits in addition to those listed here.  Consult the DSIRE website to find incentives that can be paired with many of the federal incentives.



White House IRA Page

Federal Tax Credits for Energy Efficiency  (keep checking site for updates)


The I.R.A. can be a gamechanger. It can reduce your upfront costs while also saving you money over the long-term. The right financial advisor can help you think about this program and how it may work for you and your budget. If you’re ready to talk to a financial advisor that specializes in environmental sustainability, set up a call with us today. We’re here to help you make better financial decisions and build a path forward.