We all know life’s certainties: death, taxes, and the agony of prepping and completing said taxes. Unfortunately, our investments into “Fountain of Life” expeditions have not gone to plan. We’ve decided to stick to our strengths in tax planning and organizing.
The coming months can be a hectic time gathering tax forms, financial statements, and remembering taxable events that occurred the year prior. Below are common forms, income sources, and deductions that should be provided to your tax accountant.
Income:
- Form W-2 will come from your employer and provide income and withholding information.
- Form 1099s
- 1099s for employment such as contract work or self-employment
- 1099-INT, DIV, B, or K-1s for investment or interest income
- 1099-S for income from sale of a property
- 1099-R for distributions from IRAs or retirement plans
- SSA-1099 for Social Security benefits received
- Rental property income and expenses. Provide a profit and loss statement.
- Miscellaneous income. This can include items like gambling winnings, scholarships, etc.
- Capital gains. Sale of an asset above the cost basis.
Deductions:
- Form 1098 will come from your mortgage lender and report the amount of interest you paid during the year. Form 1098-E will show the amount of student loan interest paid.
- Self-employment deductions. Possible examples: office supplies, health insurance, contributions to a retirement account (Solo 401k, SEP IRA, SIMPLE IRA), etc.
- Charitable contributions and the method of the gift.
- Medical expenses. You can deduct the amount that is above 7.5% of adjusted gross income (AGI).
- Capital losses. Sale of an asset below the cost basis.
- Health Savings Account (HSA) contributions.
- 529 Plan Contributions (may be eligible for a state income tax deduction).
There are many deadlines to be aware of. Below are important dates to consider.
- Tax filing deadline: April 18, 2023
- Extended tax filing deadline: October 16, 2023
- Taxes due for partnerships, multi-member LLCs, & S-corps: March 15, 2023
- Deadline for extended partnership and S-corporation returns: September 15, 2023
- Deadline for 2022 IRA & HSA contributions: April 18, 2023
- 2023 estimated tax payment deadlines:
- 1st Quarter: April 18, 2023
- 2nd Quarter: June 15, 2023
- 3rd Quarter: September 15, 2023
- 4th Quarter: January 15, 2024
- Required Minimum Distribution Deadline: December 31, 2023
- Deadline for contributions to employer-sponsored retirement plan (401k, 403b, 457): December 31, 2023
We have had our fair share of experience with the IRS (just ask the many employees who have been on hold with them for excruciating long waits). No one said taxes were fun, but our job is to make them less painful. An organized tax season is a happy tax season. Give us a call if you are having trouble gathering documents, have questions on last year’s planning decisions, or want us to coordinate more closely with your accountant. Let us get you away from your tax desk and back to your personal search for the “Fountain of Life.”
The opinions and analyses expressed in this presentation are based on RMB Capital Management, LLC's ("RMB Capital") research and professional experience are expressed as of the date of this presentation. Certain information expressed represents an assessment at a specific point in time and is not intended to be a forecast or guarantee of future performance, 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 presentation. The information and data in this presentation does not constitute legal, tax, accounting, investment, or other professional advice. Past performance is not indicative of future performance, and there is a risk of loss of all or part of your investment. This information is confidential and may not be reproduced or redistributed to any other party without the permission of RMB Capital. RMB Asset Management is a division of RMB Capital Management.
