Most taxpayers know Tax Day as April 15. When filing by that date isn’t feasible given life circumstances, the IRS allows taxpayers to file for a six-month extension on the filing deadline. If you filed for such an extension, you may be losing sleep about the October 16 deadline quickly approaching (because October 15 falls on a Sunday, this year’s extensions must be filed on or by Monday, October 16). Remember, not only do you have to file your taxes, but you must pay your taxes on time to avoid penalties.
Adjusting 3Q/4Q Estimates: If you fall into the category of delayed filer, one item that often slips through the cracks is making sure to adjust your third and fourth quarter payment estimates. Individuals who expect to owe $1,000 or more in taxes when their return is filed must make estimated tax payments. One way to do this is to have your employer withhold more of your earnings by filing a new W-4 with your employer. When calculating your estimated tax owed for the year, it may be smart to use last year’s income, deductions, and credits as a baseline. Don’t forget to adjust your estimated payment based on changes in your situation and changes in tax law.
File in Required States: This may seem straightforward, but creating a checklist can help ensure you are not missing any states that you should be filing in. Be sure to assess your situation for factors like a recent move, residing near the border of one state but working in another, working remotely, or having rental properties in another state.
Solo 401k Contributions: If you’re sitting on excess cash or have a treasury bill coming due, you might consider maxing out your solo 401k contributions for the year. The 2023 IRS maximum contribution to a solo 401k is $66,000 if you are under age 50 and $73,000 if you are 50 or older. Put that cash to work!
K-1s for LLC Investors: If you are an investor in an LLC, you’re probably familiar with a Schedule K-1 form. K-1s are prepared by the LLC’s accountant and completing them is the responsibility of the partnership. However, if you’re a shareholder or party to the partnership, you’ll need to be sure to file one.
As we approach the fall tax deadline, our team at RMB is here to help simplify your filing process. Don’t be reactive and let this deadline take you by surprise—be proactive and get it done!
The opinions and analyses expressed in this communication are based on RMB Capital Management, LLC’s (“RMB Capital”) research and professional experience are expressed as of the date of our mailing of this newsletter. Certain information expressed represents an assessment at a specific point in time and is not intended to be a forecast or guarantee of future results, nor is it intended to speak to any future time periods. RMB Capital makes no warranty or representation, express or implied, nor does RMB Capital accept any liability, with respect to the information and data set forth herein, and RMB Capital specifically disclaims any duty to update any of the information and data contained in this newsletter. The information and data in this newsletter does not constitute legal, tax, accounting, investment or other professional advice. Returns are presented net of fees. An investment cannot be made directly in an index. The index data assumes reinvestment of all income and does not bear fees, taxes, or transaction costs. The investment strategy and types of securities held by the comparison index may be substantially different from the investment strategy and types of securities held by your account. RMB Asset Management is a division of RMB Capital Management.