March News To Know
Dear Clients & Friends,
The deadline to send us your tax-related documents is fast approaching. As a reminder, we require that individuals send us all their documents by March 20 to be able to timely file your tax return by the due date. Otherwise, you are looking at filing an extension. If you are a business client, please reach out to your CJBS team member to discuss your deadlines and make a plan for your document submission.
In case you missed it, our Client Collaboration HUB is up and running for our individual clients. We created the HUB to help make the process of getting your documents to us easier. If you need assistance understanding how to use the HUB, please contact us. Additionally, if you plan to file for an extension, please let us know ASAP.
As a reminder, last month’s newsletter highlighted important tax-related information, including updates and changes to the SECURE Act, as well as the risks of tax identity theft and benefits of filing your taxes early.
March Tax Deadline For Certain Types of Businesses: The deadline to file federal taxes or request an extension for certain businesses—including partnerships and S corporations—is March 15. Whereas the deadline to file Illinois taxes is different. For partnerships it is April 18, and for S corporations it is March 15. If you are unable to file your business return by these dates, we are happy to help you file an extension, which would extend your deadline to September 15 for federal and a 6 months extension for Illinois. It’s important to note that extensions do not extend the payment deadline, so if you’re expecting to owe taxes (instead of a refund), arrangements for tax payments should be made by the respective deadlines.
Deadline for PTE Tax: Businesses can adjust their tax obligation (and increase their deduction) by electing to pay the Pass Through Entity (PTE) tax—a benefit that many states have enacted, including Illinois. This legislation allows for the company to pay the partner’s or shareholder’s income tax obligation and bypass the otherwise applicable federal cap limitation. All estimated income tax due needs to be paid by the April 18, 2023 deadline, with ongoing quarterly estimated taxes also being paid throughout the year.
2022 IRA Tax Contributions: 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. IRA Contributions are allowable until the tax deadline of April 18, 2023. The 2022 maximum contribution amount for either type of IRA is $6,000, or $7,000 if you’re age 50 or older. [Note: the maximum contribution for 2023 increases by $500.]
HSA: If you didn’t contribute the maximum amount to your HSA (Health Savings Account) in 2022, you are still eligible to do so until the April 18th deadline for a 2022 tax deduction. An individual with coverage under a qualifying high-deductible health plan (HDHP), where the deductible is not less than $1,400, can contribute up to $3,650—up $50 from 2021. So, if you are filing an extension, it’s important to talk to your CJBS team member to review your HSA and possibly minimize your tax liability while there is still time to do so. [Note: If you have family HDHP coverage, you can contribute up to $7,300. For 2023, if you have self-only HDHP coverage, you can contribute up to $3,850, and If you have family HDHP coverage, you can contribute up to $7,750.]
What is the IoT?
Simply put, it’s the result of the evolution of the internet. Originally, the internet was intended to be a network to connect computers. From there, it expanded to phones and portable devices, like tablets. Soon after, however, it rapidly expanded to an array of “smart” electronic devices, such as: televisions, refrigerators, vacuums, HVAC, and security systems, to name a few. This is now what’s known as the Internet of Things. Read the full article here!
As always, we are on hand and ready to help you maximize your tax benefits, while remaining compliant with current law. We’re happy to answer any questions you might have. Please contact us today.
Stay safe & healthy,
The CJBS Team