La Grande tax expert offers advice for 2024 tax season
By Joe Hathaway on Friday, February 2nd, 2024 in More Top Stories Northeastern Oregon News
LA GRANDE — Tax season is now upon us. The IRS and the Oregon Department of Revenue have begun 2023 federal and state income tax returns. As tax season unfolds in Oregon, taxpayers should stay informed about federal and state updates that may impact their returns.
Elkhorn Media Group recently sat down with Yvonne Roberts, one of the partners of Connected Professional Accounts in La Grande, to chat about what people need to be aware of this tax cycle.
State Updates:
This year, Oregon will be getting the biggest kicker in state history and it comes to almost everyone who paid Oregon state income tax for 2022. Oregon’s tax revenue this year came in at $5.6 billion, nearly three times larger than the previous largest kicker just 2 years ago but you need to file your taxes this year to get that money.
“It is basically a percentage of your 2022 tax liability that will come back to people,” said Roberts. “So 44.28% of what you paid for a tax liability in 2022 will come back on your 2023 tax return as a credit.”
Additionally, Robert’s shared information about a new refundable tax credit for lower-income taxpayers with qualifying children aged five and younger. She also touched on the impact of the Oregon Saves program, saying, “So if they receive benefits, they’ll be getting statements and that will be impacted on their tax return if they got paid through that Oregon saves program.”
Discussing a credit for agricultural employers paying overtime wages, she explained, “There were some new overtime laws that went into effect. And this credit is to help agricultural employers offset some of that cost.” She says
Federal Changes:
According to Roberts, the Secure Act 2.0, a federal tax update, focuses on retirement plan changes with the goal of encouraging more people to save for retirement. She emphasized its significance, stating, “It brought about pretty substantial changes to the retirement account rules in the United States. And some of them go into effect in 2023, others in 2024 and later.”
Discussing key highlights for 2023, Roberts explained, “In the past, you had to take a required minimum distribution from a retirement plan at the age of 72. The Secure Act raises that age to 73 and then it will keep moving up over the next several years to age 75.”
She also noted a positive change for employers, stating, “It allows employers to offer some small financial incentives to help boost employee participation in their retirement plans. That’s kind of been something that hasn’t been allowed in the past.”
Tax Planning Strategies:
Roberts offered practical tax planning strategies, advising individuals to “take advantage of any employer plans to the maximum that you can” and consider contributions to IRAs. For businesses, she highlighted the use of depreciation rules through Section 179 or bonus depreciation to stay in more beneficial tax brackets.
Common Mistakes:
Highlighting common mistakes, Roberts mentioned that individuals often fail to provide all necessary income documents. She also emphasized the importance of tracking business expenses, “I just see people maybe not tracking as well as they can tracking their expenses, especially, usually the income they’re taxed,” said Roberts. “Missing expenses, because they haven’t kept good records, that can definitely hurt you if you don’t get all your expenses in.”
Impact of Emerging Technologies:
Regarding the impact of emerging technologies, Roberts acknowledged the evolution in tax preparation methods, stating, “It’s evolved, I would say. I don’t think it’s diminished.” She highlighted the positive effect on simple filers, noting, “If you just have W-2 and not a lot else, I think it’s made it much easier for people like that to file their own taxes.”
As taxpayers gear up for the tax season, Roberts emphasized the importance of seeking professional advice, particularly for those undertaking new ventures. Whether starting a business or making significant life changes, consulting a tax professional ensures compliance with rules and maximizes potential benefits.
