April News To Know
Dear Clients & Friends,
Tax deadlines are upon us. This year, tax day is April 18th in most states, with an extension date of October 16th. For individuals in FEMA-designated disaster areas, the deadlines have been postponed to October 16, 2023.
If you haven’t started on your taxes for 2022, now is the time. Even if you’re filing an extension, any payments are still due by April 18th. Additionally, if you want to make any final contributions to your IRA, HSA, or 401k for 2022, they must be made by April 18th. See below for more details related to each.
CJBS will automatically extend your tax return if we determine it is necessary.
Disaster-area Postponed Deadlines
The IRS is offering relief to any area designated a disaster by the Federal Emergency Management Agency (FEMA) in three states. Specifically, per the IRS statement on February 24, 2023, “taxpayers in most of California and parts of Alabama and Georgia now have until Oct. 16, 2023, to file various federal individual and business tax returns and make tax payments.” This is a new postponement, as the previous one had been set to May 15th for these areas.
Last-minute contributions for 2022 are allowed until the tax deadline of April 18th. If you haven’t maximized your contributions, it might be a good time to consider doing so. Here is a bit more information to help guide you in your decision:
2022 IRA Tax Contributions are allowable until the tax deadline of April 18th. The 2022 maximum contribution amounts are $6,000, or $7,000 if you’re age 50 or older. As a reminder, if you’re saving for retirement via a Roth or traditional IRA and plan to make a contribution to your retirement fund, you need to do so by the tax deadline.
If you didn’t contribute the maximum to your 2022 Health Savings Account (HSA), you can still do so until April 18th for a 2022 tax deduction. This is one way you can help minimize your tax liability. Additionally, if you are filing an extension, it’s important to talk to your CJBS team member to review your HSA while there is still time to do so before the deadline.
Self-employed individuals who are looking to save additional tax dollars and have an established solo 401k or SEP IRA, can make additional employee/employer contributions by the tax return due dates (including extension).
One other deadline to keep in mind is the April 18th deadline for making the first quarterly estimated tax payment for 2023, if you’re required to make one. Please call your CJBS team member with any questions.
If you haven’t started on your taxes yet, please reach out to your CJBS team member today. Our goal is to help you maximize your tax benefits while remaining compliant with current law. As always, we are here to help, and we’re happy to answer any questions you might have. We wish all those celebrating Easter, Passover, and Ramadan a peaceful and blessed weekend.
Stay Safe & Healthy,
The CJBS Team