Tax Deadlines and What you Need to Know
“The difference between death and taxes is death doesn’t get worse every time Congress meets” – Will Rogers
As I sit here typing this draft, the IRS released notification that they’ll start processing returns on January 20th, which I suppose makes it official. It’s time to wrap up the books for 2022 and get to work on our taxes. Here are some important things to keep in mind for tax year 2022.
Deadlines
Your personal return is due by April 18, 2023. Why? April 15th falls on a weekend and the next business day is a holiday. Which means we’re treated with three extra days to file. You can request for an extension to push the filing deadline back to October 16, 2023. Just remember, you still must pay the tax due by the original April 18th deadline. Unfortunately, an extension to file isn’t an extension to pay.
Did you attain the age of 72 during 2022? If so, be sure to withdraw your required minimum distribution (RMD) by April 1, 2023. Any amount of the RMD not taken timely will be taxed at 25% (yikes). If you’re 73 or over, make sure you take your full 2023 RMD as well. Be on the lookout for our Secure Act 2.0 blog update, coming soon.
Retirement contributions to traditional and Roth IRA’s must be made by April 18, 2023. These are limited to $6,000 if you’re under age 50 and $7,000 if age 50 or over.
Did you accidently over contribute to your retirement plan? Make sure to withdraw the excess contribution, plus earnings on the excess by the due date of your return (4/18/23 or 10/16/23, if you extend). The tax and penalties on the amount not withdrawn depend on your age and the type of plan, but you don’t want to deal with any excess amounts due, so make a timely withdrawal!
More to Consider
Once you’ve gathered all your tax information and have met with your CPA, plan for the filing deadline. If you’ll be traveling around April 18th, let your CPA know. Have a plan for how you’ll be available to sign the return and all necessary forms. If you’ll owe tax or have a first quarter estimated payment due, know how you’ll get the vouchers, checks needed and mailed before the deadline. Remember, the post office is extremely busy the closer we get to Tax Day.
Be sure to consult your CPA or tax advisor for guidance specific to your tax situation. Happy filing!