The IRS Raises 2023 Retirement Plan Contribution Limits
As they do each year, the IRS announced 2023 retirement plan increases as follows: 2022 2023 2023 Catch Up 401(k), 403(b) & 457 $20,500 $22,500 $7,500 Traditional or Roth IRA $6,000 $6,500 $1,000 SIMPLE IRA $14,000 $15,500 $3,500 SEP IRA $61,000 $66,000 N/A Catch-Up Contributions Individuals aged 50 or older are allowed to make…
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IRS Announces Delay for Implementation of $600 Reporting Threshold for Third-Party Payment Platforms – Form 1099 K
On December 23, 2022, the Internal Revenue Service announced delay in implementation of the new $600 reporting threshold for third-party network’s Forms 1099-K. As a result of this delay, third-party networks will not be required to report 2022 tax year transactions on a Form 1099-K to the IRS or the payee for the new $600 threshold amount.
Charitable Contribution Documentation
Approximately 30% of annual charitable giving in the US occurs in December. As we enter the giving season, make sure you have the proper documentation to substantiate a gift for tax deduction purposes. For all contributions of $250 or more, you must have a contemporaneous written acknowledgment (“CWA”) from the organization. A CWA must include…
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Individual Capital Gains Explained
At year-end, we get calls from clients asking about individual capital gains as they harvest gains and losses. This is an overview of the rules. Capital gains are grouped and taxed based on the holding period. Long-term capital gains or losses are generated by the sale of assets held over 12 months, and short-term have…
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2023 Alabama Tax Cut for Retirees with 401k and IRA Distributions
Governor Ivy signed HB162 into law which exempts the first $6,000 of retirement plan distributions for taxpayers age 65 or older beginning January 1, 2023. This mirrors the taxation of defined benefit plans for other plans such as 401K or IRAs. The exemption increases by $6,000 per year until it reaches $24,000 in 2026. The…
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Making the Most of Fixed Asset Purchases – Expensing Options
Let’s review some options to reduce taxable income through expensing of fixed asset purchases and, in some cases, improvements.
1099s – Why the Rush?
While many would prefer to “think about that tomorrow” or in January, time spent now can significantly affect how hectic your January will be. The best practice is to have new vendors provide a completed W-9 before issuing a payment. We also recommend reviewing 1099 vendors a few times throughout the year and requesting any…
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Do You Have Adequate Insurance Coverage for Your Home?
We all saw the devastation in Florida from Hurricane Ian. Its estimated losses will total $50 billion. Sadly, due to inadequate insurance coverage, many will not fully recover their losses. Closer to home, we can still see some of the damage caused by the tornado outbreak in March of 2021. Do you know what happens…
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Completing IRS Form W-9
You may receive requests for a completed signed IRS Form W-9. The information requested on form W-9 can be used to generate a 1099. Completing the W-9 does not imply you will receive a 1099. Form W-9 is a formal written request for information only to confirm a person’s (or entity’s) name, address and taxpayer…
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IRS Announces Annual Inflation Adjustments for 2023
The IRS recently announced the 2023 annual inflation adjustments for over 60 tax provisions. Most of these changes will apply to the calendar year 2023 tax returns that will be filed in 2024. Income Tax Brackets For married couples filing a joint return and single individuals, the chart below shows the marginal ordinary tax rate…
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