3 lesser-known ways to trim your 2022 tax bill or boost your refund before year-end

If you've had a beardown twelvemonth and expect little net successful 2023, you whitethorn effort to defer a vacation bonus until the caller year, experts say.

"It's ever breathtaking to reap the rewards of hard enactment by getting a year-end bonus," said Lisa Greene-Lewis, a CPA and taxation adept with TurboTax. "But sometimes that whitethorn bump you up into different tax bracket."

However, by receiving the wealth successful January, you whitethorn trim 2022 income without waiting excessively agelong for the funds, assuming your institution allows it, she said.

It's not casual to assertion the aesculapian disbursal deduction. For 2022, there's a taxation interruption for unreimbursed aesculapian expenses that transcend 7.5% of your adjusted gross income. But tin lone assertion it if you itemize deductions.

Typically, you'll itemize if deductions — including charitable gifts, medical expenses and much — transcend the modular deduction, which is $12,950 for azygous filers oregon $25,900 for joined couples filing unneurotic for 2022.

While it's hard to program for aesculapian expenses, you're much apt to maximize the deduction by "bunching" expenses for 2 years into one, explained certified fiscal planner Marguerita Cheng, CEO of Blue Ocean Global Wealth successful Gaithersburg, Maryland.

For example, with aggregate children successful orthodontic braces, you whitethorn inquire to prepay the remaining equilibrium earlier year-end if you tin spend it, she suggested. "The supplier whitethorn besides supply a discount for paying disconnected everything sooner," said Cheng, who's besides a subordinate of CNBC's Financial Advisor Council. 

Of course, you'll request to task your adjusted gross income, full itemized deductions and tally your erstwhile 2022 aesculapian expenses first.

With the S&P 500 Index down astir 15% for 2022, you whitethorn beryllium eyeing a Roth idiosyncratic status relationship conversion, which transfers pre-tax funds to a Roth IRA for aboriginal tax-free growth. The trade-off is you'll beryllium upfront taxes connected the converted amount.

The strategy whitethorn wage disconnected erstwhile the marketplace dips due to the fact that you tin bargain much shares for the aforesaid dollar amount, and there's a accidental for taxation savings connected the converted portion.

However, depending connected your income level, you whitethorn besides see a partial conversion annually, experts say.

"The bottommost enactment is if you are successful status oregon adjacent status and your income is down, past you privation to see filling up capable to maximize your bracket," said Thomas Scanlon, a CFP and CPA astatine Raymond James successful Manchester, Connecticut. 

For example, if you're already successful the 24% bracket, it's imaginable there's inactive country for much income earlier triggering 32% connected the excess amount, helium said. 

Scanlon said partial Roth conversions enactment good for retirees who are "income airy and plus heavy," similar idiosyncratic who leaves the workforce with respective years earlier they person to commencement taking required minimum distributions.