Financial Tips

October 9th, 2023

Extension Deadlines

October 16th, 2023, is one week from today and it is the last day to file your 2022 income tax return for individuals and C-Corporations

Gambling and the IRS

Gambling winnings either from the casino or from online better is taxable. You will receive form W2G from the gambling establishment January 2024 if your winnings are at least $600. The payer also sends a copy to the IRS. To offset all or part of those winnings, you need to register with the casino and/or with the online establishment. They will issue you a statement stating the wins and losses for the year. Another way to reduce your winnings is to keep your losing lottery tickets

Receiving Form 1099-k

Form 1099-k Payment Card and Third-Party Network Transactions is an IRS form used to report certain payment transactions. If you accept money electronically for selling goods or providing a service, it is likely you will get a form 1099-k if you are being paid more than $600 in the calendar year. You must report all income on your tax return. Money received as a gift or for reimbursement does not require a form 1099-k. If you received form 1099-k and included are these types of personal payments, you will be able to offset those amounts. Good record keeping is key.

Retirement Savings

The beginning age for taking minimum distributions (RMDs) rises to 73 from 72 for owners of traditional IRAs, 401(k)s and other employment retirement plans. This applies to account owners who turn 72 after 2022. If you turn 73 this year, you must take your RMD by April 1st, 2024. Employees who work past 73 can delay taking RMDs from their current employer’s 401(k) until they retire. There is a penalty for people who fail to take their RMD, but that is lower than in past years. Starting in 2023, the tax for such failures is 25% of the missing RMD amount, which is down from 50%. The maximum contribution limits for 401(k), 403(b) and 457 plans jump from $20,500 to $22,500 for 2023. People born before 1974 can put in $7,500 more as a catch-up contribution. The 2023 contribution limit for traditional IRAs and Roth IRAs increased to $6,500, Plus $1,000 as an additional catch-up contribution for individuals aged 50 and up.

Gordon Jackson

[email protected]

October 9th, 2023