Essential Year-End Tax Strategies for Charles River Laboratories International Employees: What You Need to Know Before 2023

Healthcare Provider Update: Healthcare Provider for Charles River Laboratories International Charles River Laboratories International, Inc. is primarily known for providing various preclinical and clinical laboratory services to the pharmaceutical, medical device, and biotechnology industries. Their healthcare offerings include specialized services such as toxicology testing, bioanalysis, and laboratory research, but they do not act as a traditional healthcare insurance provider or offer direct healthcare services. Potential Healthcare Cost Increases in 2026 In 2026, significant premium increases are anticipated for health insurance plans within the Affordable Care Act (ACA) marketplace, driven by escalating medical costs and the possible expiration of enhanced federal subsidies. Some states may see hikes exceeding 60%, particularly affecting low and middle-income families reliant on these plans. With reports indicating that over 90% of marketplace enrollees could face premium raises of 75% or more, the landscape for healthcare affordability will become increasingly challenging, prompting consumers and companies alike to reassess their healthcare strategies and financial planning. Click here to learn more

Here are some things for Charles River Laboratories International employees and retirees to consider as they weigh potential tax moves between now and the end of the year.

1. Defer income to next year
Charles River Laboratories International employees must consider opportunities to defer income to 2023, particularly if you think you may be in a lower tax bracket then. For example, you may be able to defer a year-end bonus or delay the collection of business debts, rent, and payments for services. As a Charles River Laboratories International employee, doing so may enable you to postpone payment of tax on the income until next year. 

2. Accelerate deductions
Charles River Laboratories International employees and retirees should also look for opportunities to accelerate deductions into the current tax year. If you itemize deductions, making payments for deductible expenses such as medical expenses, qualifying interest, and state taxes before the end of the year (instead of paying them in early 2023) could make a difference on your 2022 return.

3. Make deductible charitable contributions
As a Charles River Laboratories International employee, if you itemize deductions on your federal income tax return, you can generally deduct charitable contributions, but the deduction is limited to 50% (currently increased to 60% for cash contributions to public charities), 30%, or 20% of your adjusted gross income (AGI), depending on the type of property you give and the type of organization to which you contribute. (Excess amounts can be carried over for up to five years.)

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4. Bump up withholding to cover a tax shortfall
As a Charles River Laboratories International employee, if it looks as though you will owe federal income tax for the year, consider increasing your withholding on Form W-4 for the remainder of the year to cover the shortfall. Time may be limited for Charles River Laboratories International employees to request a Form W-4 change and for their employers from Charles River Laboratories International to implement it in time for 2022. The biggest advantage in doing so is that withholding is considered as having been paid evenly throughout the year instead of when the dollars are actually taken from your paycheck. This strategy can be implemented by Charles River Laboratories International employees to make up for low or missing quarterly estimated tax payments.

5. Save more for retirement
Deductible contributions to a traditional IRA and pre-tax contributions to a Charles River Laboratories International-sponsored retirement plan such as a 401(k) can reduce your 2022 taxable income. As a fortune 500 employee, if you haven't already contributed up to the maximum amount allowed, consider doing so. For 2022, Charles River Laboratories International employees can contribute up to $20,500 to a 401(k) plan ($27,000 if you're age 50 or older) and up to $6,000 to traditional and Roth IRAs combined ($7,000 if you're age 50 or older).* The window to make 2022 contributions to a Charles River Laboratories International-sponsored plan generally closes at the end of the year, while you have until April 18, 2023, to make 2022 IRA contributions.

*Roth contributions are not deductible, but Roth-qualified distributions are not taxable.

Tags:  Financial Planning ,  Tax ,  Retirement ,  2022