DEADLINES
Individual/C-Corp/Trust/FBAR: April 18, 2023
Partnership/S-Corp: March 15, 2023
TAX FILING SEASON BEGIN DATE: January 23, 2023. Due to provisions in the federal tax law, some tax returns may not be eligible for e-filing until a later date. You may still submit your information to me now.
PAYMENT AND AUTHORIZATION FORMS: Your return will not be filed without receipt of full payment for the return as well as signed and dated e-file authorization forms. If there are extenuating circumstances, please contact me ASAP. Accepted changes must and will be documented.
ENGAGEMENT LETTERS: If an email address is on file for all taxpayers listed on return, you will receive a copy via Docusign; if not or as otherwise instructed, a copy will be mailed to the mailing address on file. If a signed copy is not remitted to my office, submission of your documents will be deemed acceptance of the terms of the engagement letter. You may request a copy at any time.
FEE INCREASES: Fees will generally be increased ~6% to account for inflation during 2022. Any changes to your filing status or reporting (e.g. adding a rental property) will impact your return similarly as before.
APPOINTMENT SCHEDULING: Appointments may be made online at www.murthataxllc.com. Please follow instructions on the “Schedule Appointment” page. You may also call or email my office. If you would like to request an appointment outside of normal hours, please reach out to see if accommodation may be arranged.
ONLINE PORTAL: If you would like to access Onvio to transfer and store documents, please contact my office. If you have already registered, you should continue to have access. Please reach out with any issues or questions.
IRS/SOCIAL SECURITY SCAM CALLS: If someone on phone or email ever puts you under threat of arrest or demands money be sent to them immediately, do not reply. The first point of contact with the IRS will be a letter in the mail. Please do not provide your SSN or other sensitive details to someone from unverified number or email.
Major changes for 2022 tax year include the following:
➢ Child Tax Credit: Decrease from $3,000 per child ($3,600 if 6 or younger) to $2,000; higher phaseout level.
➢ Child and Dependent Care Credit: Maximum allowable expenses decreased from $8,000 to $3,000 for one child or dependent (from $16,000 to $6,000 for two or more children or dependents).
➢ Business Meals: Businesses and self-employed individuals are allowed to deduct 100% of business expenses for meals if the expense is for food or beverages provided by a restaurant.
Major changes for 2023 tax year include the following:
➢ Required Minimum Distribution (RMD) Age: As of January 1, 2023, the age when RMDs must start will change to 73 (originally 72). If you already receive RMDs, your scheduled distributions remain the same.
➢ IRA max contribution: $6,500 if under age 50 (formerly $6,000); $7,500 if over age 50 (formerly $7,000).
➢ Social Security Wage Base: Increased to $160,200 from $147,000.
DOCUMENTS AND INFORMATION TO PROVIDE
Income: Wages (Form W-2), retirement distributions (1099-R), Social Security benefits (SSA-1099), interest (1099-INT), dividends (1099-DIV), sales of stock/bonds (1099-B, Composite 1099), miscellaneous income (1099-MISC), nonemployee compensation (Form 1099-NEC), payment card and third-party network transactions (1099-K), rental property income and expenses, Schedule K-1 (partnership, S-Corp, trust), unemployment (1099-G), alimony received, gambling winnings (W-2G), debt cancellation (1099-C), 529 savings plan distribution (1099-Q), HSA distribution (1099-HSA), sales of cryptocurrency or other property
Deductions: Out-of-pocket medical and dental expenses, health insurance (Form 1095-A), long-term care premiums paid, mortgage interest (Form 1098), real estate and/or personal property taxes paid, charitable contribution amounts and itemized receipt if donated goods/items, estimated tax payments (dates and amounts), child care expenses, alimony paid, gambling losses, student loan interest (1098-E), tuition (1098-T)
Self-employed persons: Revenue, itemized list of expenses, home office square footage, car mileage breakdown
Contributions: Retirement plan (e.g. IRA), 529 education savings plan, Health Savings Account (Form 5498-SA)
Life Events: Change/sale of residence, birth/adoption, marriage/separation/divorce, start new business, change jobs, retirement, provide room and/or money to dependent person, work multiple states, become business partner
Please provide all information as soon as practicable and, if an individual filer, especially before Friday, March 24. Please do not wait for that one last form to come in as you may be forced to go on extension and have your return filed after the original April 18 deadline. Please remember that an extension of time to file is not also an extension of time to pay so payment amount may need to be calculated and made as well. Extended returns due October 16.