As we reflect on another year of business, we would like to thank you for being one of our best clients, we wish you a very Happy and Prosperous New Year 2023. Here's to a new year filled with limitless possibilities and positivity. We hope you have a sparkling year ahead that's filled with love, abundance and ever-growing prosperity.

 

Thank you for choosing us and for your trust in our services. We look forward to serving you again this year! Your referral is the greatest compliment and confidence that you show on our work. We truly appreciate your business and the referrals. Your satisfaction is our #1 priority.

 

Changes/highlights for 2022 Tax Returns

  • Individual and corporate tax returns are due on April 18, 2023, the Partnership and S-corporation taxes are due on March 15, 2023, and nonprofits are due on May 15th, 2023.
  • Last quarterly payment for 2022 including additional tax payments due to non-wage income (e.g. capital gains) is due on January 17, 2023

  • Some tax credits return to 2019 levels. Affected taxpayers will likely receive a significantly smaller refund compared with the previous tax year. Changes include amounts for the Child Tax Credit (CTC), Earned Income Tax Credit (EITC) and Child and Dependent Care Credit.

  • No above-the-line charitable deductions. During COVID, taxpayers could take up to a $600 charitable donation tax deduction on their tax returns. However, in 2022, those who take a standard deduction may not take an above-the-line deduction for charitable donations.
  • Eligibility rules changed to claim a tax credit for clean vehicles.
  • Consider using your Income Tax refund to save by buying U.S. Savings Bonds for 6.89% return.

 

Changes and provisions for 2023 Tax Year

  • Retirement savings to a qualified account such as a 401(k) or 403(b) has increased to $22,500. The limit on the total employer and employee contributions to these plans is $66,000. Those at 50 or older can contribute additional $7,500 as catch-up amount. The limit on annual contributions to an IRA increased to $6,500.
  • The annual gift tax exclusion will be $17,000 per person in 2023 which can be useful as you plan your estate.
  • The tax rate structure, which ranges from 10 to 37 percent, remains the same; however, the tax-bracket thresholds increased for inflation adjustment so does the Standard Deductions.
  • Foreign earned income exclusion increased so does the amount you contribute for a family health insurance plan (Health Savings Account).
  • For businesses, changes in employee retention credit, R&D credit, and threshold for certain deductions have been increased.

 

Get ready to handle your 2022 Tax Return

We look forward to supporting you again with your tax needs, either in-person or virtual. Please upload your tax documents (as you receive them) into the secure client portal, or drop them off at the office locations, or mail them to us.

 

April 18th is not too far out as such we recommend that you schedule your appointment for finalizing the 2022 tax with us now.