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Business Tax Tips

Page last reviewed or updated: January 10, 2024

Tax Law for Business Filers

NEW FOR 2024: Beneficial Owner Information Report (Mandatory Filing)
- For existing businesses, the Corporate Transparency Act (CTA) goes into effect on January 1, 2024, and imposes a brand-new federal filing requirement on most corporations, limited liability companies, and limited partnerships and on certain other business entities.
- No later than December 31, 2024, all non-exempt business entities must file a beneficial owner information report (BOI report) with the Financial Crimes Enforcement Network (FinCEN)—the Treasury Department’s financial intelligence unit.
- The BOI reports must disclose the identities and provide contact information for all of the entity’s “beneficial owners”: the humans who either (1) control 25 percent of the ownership interests in the entity or (2) exercise substantial control over the entity.
- The report can be filed online at https://boiefiling.fincen.gov/
The taxable income of a C Corporation is taxed at a flat rate of 21%.
Like-kind exchanges are only allowed for real estate transaction exchanges. They are no longer allowed for personal or intangible
For trade-ins of business autos, the transaction is treated as the sale of the old auto and purchase of the new one. Any gain on the old auto must be reported and included in income.
Employers must include moving expense reimbursements in employee wages unless the employee (or their spouse or dependents) is an active member of the U.S. Armed Forces.
When an S Corporation or Partnership fails to file its return by the due date (or the extended due date), the IRS will impose a $220 penalty for each month or part of the month the return is late multiplied by the number of shareholders or partners.
Most taxpayers no longer have the option to carryback a Net Operating Loss (NOL). NOLs arising in Tax Years ending after 2020 can only be carried forward. In addition, for losses arising in taxable years beginning after December 31, 2020, the net operating loss deduction is limited to 80% of the excess (if any) of taxable income. Excess NOLs generally may be carried forward indefinitely.
A noncorporate taxpayer may be subject to excess business loss limitations. An excess business loss is that amount by which the total deductions attributable to all your trades or businesses exceed your income from those trades or businesses plus a threshold amount. For 2023, the threshold amounts are $578,000 for Joint Filers and $289,000 for all other filers.
Any business that pays at least $600 for services performed by a person who is not their employee is required to file Form 1099NEC.
Form 1099-K reporting remains the same in 2023 with the $20,000 threshold and 200 transactions minimum. The proposed 2024 threshold is $5,000.
As of 2022, the IRS requires Form 7203 for S Corporations. The IRS requires S Corporation shareholders to prepare and attach Form 7203 to their personal tax return. This form is used to track the Shareholder’s Stock and Debt Basis. It is also used to figure potential limitations of a taxpayer’s share of the S Corporation’s deductions, credits, and other items that can be deducted on their personal tax return.

General Business Deductions

A deductible business expense must be both ordinary and necessary. This means it is an expense that is common and accepted in the taxpayer’s line of work and is helpful and appropriate for work. Generally, a business can deduct legitimate expenses even if the expenses exceed income from the activity. There are some instances when the deductible amount of business losses may be limited.
Services in trade are not deductible as a business expense. If the taxpayer provides services as payment for a business expense, the deductible amount is limited to actual out-of-pocket expenses paid.
A business bad debt occurs when a taxpayer is owed money that cannot be collected. To be deductible, the amount owed must have already been included in taxable income in a previous year. In addition, loans made to clients and suppliers that become worthless can also be deductible in some instances.
A taxpayer is allowed to deduct up to $5,000 of start-up costs and $5,000 of organizational expenses in the taxable year in which its business begins, but only if the total startup costs are $50,000 or less. The costs remaining after this deduction should be amortized annually over the next 15 years.
Repairs and maintenance can generally be deducted in the same way as any other business expense. These are costs to keep the property in good operating order that do not materially add value to the property or prolong its useful life. Examples of deductible items include repainting, fixing gutters and leaks, replacing broken windows, servicing office equipment and cleaning and lubricating machinery.
Insurance premiums that are not deductible include amounts paid into a self-insurance fund, loss of earnings policies that pay for the taxpayer’s lost earnings due to sickness or disability, life insurance and annuities if the taxpayer is directly or indirectly a beneficiary of the policy and insurance to secure a loan. However, premiums for overhead insurance that pay for business overhead expenses due to the taxpayer’s disability are deductible.
Deductible business gifts for customers and clients are limited to $25 per individual per year.
Special rules apply for substantiation of expenses for meals, travel, and lodging. Records must be maintained that include the amount and purpose of the expense, time and place and the business relationship between the parties.
NEW FOR 2023. Business meals are deductible if incurred while traveling on business or while entertaining a client, customer, or employee. For Tax Year 2023 businesses can only claim 50% of these costs.
Travel and lodging expenses are ordinary and necessary expenses incurred by a taxpayer while on temporary travel away from his or her tax home for business purposes. Generally, you are considered traveling away from home if your business duties require an absence that is substantially longer than a day’s work. Deductible expenses may include air, train, bus or car travel between your tax home and business destination as well as transportation, lodging and other ordinary and necessary expenses related to the business travel. Travel as a form of education is not deductible and business travel by ocean liner, cruise ship or other forms of “luxury” water transportation is subject to limitations.
Instead of deducting the actual expenses of business use of an automobile, a taxpayer may use the standard mileage rate The business standard mileage reimbursement rate for 2023 is 65.5 cents per mile. The standard mileage rate is also allowed for leased vehicles. If chosen, the standard mileage rate must be used for the first year placed the vehicle is placed in service and continued for the entire lease term. For 2024, the standard mileage rate for business increases to 67 cents per mile.
In general, the deduction for any expenses related to activities considered entertainment, amusement or recreation are not allowed. Examples include entertaining guests at nightclubs, social, athletic, and sporting clubs, theaters, sporting events, yachts, vacations, and other similar trips.
Membership dues with respect to any club organized for business or other social purposes cannot be deducted. This includes country clubs, golf, and athletic clubs. Professional organizations relating to the business trade can be deducted.

Qualified Business Income Deduction (QBID)

For Tax Years 2018 through 2025, eligible taxpayers may be able to deduct up to 20% of qualified business income from a domestic business operated as a sole proprietorship or through a Partnership, S Corporation, Trust, or Estate. Here is a general overview of the deduction.
Businesses that do not qualify for this deduction include businesses conducted through a C Corporation and wages earned as an employee.
The deduction is taken for Partnerships and S Corporations at the individual or shareholder level. The amounts are reported to taxpayers on the Schedule K-1 they receive from the Partnership or S Corporation. An Estate or Trust may also pass-through the amounts on the beneficiary’s Schedule K-1.
The deduction is generally limited to the lesser of (1) 20% of qualified business income or (2) 20% of the taxpayer’s income minus net capital gains. For 2023, the amount of the deduction is gradually reduced and may be phased out if your taxable income before the QBID exceeds $364,200 for Married Filing Jointly Filers, $182,100 for all other filers.

Depreciation

Property improvements. If you improve property that you are already depreciating, you must treat the improvement as a separate depreciable property. Improvement means an addition to or partial replacement of property that results in a betterment, restores the property, or adapts it to a new or different use. Examples include room additions, a new roof, new flooring, new heating/cooling, new plumbing systems and installing a security system. The cost of these types of improvements is depreciated according to the same class and recovery period of the original property.
Special Depreciation Allowance (Bonus Depreciation). The special depreciation allowance allows Bonus Depreciation to 100% for all qualified purchases made between September 27, 2017, and January 1, 2023. Bonus Depreciation decreases to 80%, starting in 2023. Bonus depreciation will continue to decrease for ensuing years: 60% for 2024, 40% for 2025, 20% for 2026, and 0% beginning in 2027. This deduction applies to depreciable business assets and certain other property. Machinery, equipment, appliances, and furniture generally qualify.
Used property acquired may also qualify for this special depreciation. In order to qualify, the used property must be the taxpayer’s first use. In addition, the property must not have been acquired from a related party.
Qualified business property does not include property placed in service and disposed of in the same tax year or property converted from business use to personal use in the same tax year acquired.
Special depreciation is the default method for qualifying property in the year placed in service. If you do not wish to take this deduction, you must attach a statement to your return indicating that you are “electing out” of this deduction.
Section 179 Expense Deduction. The Section 179 deduction is generally the cost of the qualifying property. However, the total amount a taxpayer may elect to deduct under Section 179 is subject to maximum deduction dollar limits, investment limits and a business income limit.
- The Section 179 maximum deduction dollar limit for 2023 is $1,160,000.
- Sport utility vehicles (SUVs) are limited to a Section 179 deduction of $28,900.
- If the cost (the investment amount) of Section 179 property placed in service in 2023 exceeds $2,890,000 the available deduction is reduced by the amount of the excess (but not below zero). Amounts disallowed because of the investment limit may not be carried forward.
- The maximum Section 179 deduction cannot exceed your business income.
- Taxpayers may elect to claim improvements made to nonresidential property as a Section 179 deduction if the qualified improvements were made after the date the property was first placed in service.
Luxury Automobile Limits. Annual limits for depreciation apply to most passenger automobiles, trucks, and vans. These limits are referred to as “luxury auto limits.”
Passenger automobiles that qualify for the special depreciation allowance are eligible for an increased first-year depreciation limit. For 2023, the first-year depreciation limit is $20,200 if the special depreciation allowance (bonus depreciation) is claimed. If the taxpayer does not claim the special depreciation allowance, the highest first-year depreciation deduction is $12,200. The higher limit does not apply to the Section 179 expense. For 2023, the combined Section 179 expense and regular depreciation cannot exceed $12,200 for the first year.
For vehicles used 50% or less for business, the taxpayer is not eligible to claim the special depreciation allowance (bonus depreciation). In addition, there are different depreciation rules that must be applied.

REMINDER: Annual Reports for all Florida Corporations, including Limited Liability Companies and Professional Associations, are required to be filed with the Florida Department of State. You should receive an email from the State of Florida with the details. The 2024 Annual Report is due by 11:59 PM EST on Monday, May 1, 2024. After May 1, a $400 late filing penalty will be assessed by the state. The report can be filed online at sunbiz.org.

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Tax Tips 2023

Page Last Reviewed or Updated: January 9, 2024.

We are required to electronically file all income tax returns. IRS encourages taxpayers to file their returns electronically to minimize errors and to speed up the refund process. However, if you prefer to mail-in your tax return, please let us know. We will file the appropriate form with your tax return that will allow you to opt-out of this requirement.

Updates for Tax Year 2023

The IRS has confirmed that it will begin accepting and processing Tax Year 2023 returns on January 29, 2024.
For Tax Year 2023, the tax rates remain at 10%, 12%, 22%, 24%, 32%, 35% and 37%.
In 2023, the Standard Deduction increases to $27,700 for Married Filing Jointly; $13,850 for Single and Married Filing Separately, and $20,800 for Head of Household Filers. There are additional Standard Deductions if you are 65 years or older and/or legally blind.
Not all taxpayers can take a standard deduction. A married individual filing as Married Filing Separately whose spouse itemizes deductions must also itemize. In other words, if one spouse itemizes on a separate return, both must itemize.
In 2023, the standard deduction amount for an individual who may be claimed as a dependent by another taxpayer cannot exceed the greater of (1) $1,250 or (2) the sum of the individual’s earned income plus $400.
If you have net long-term capital gains and/or qualified dividends, you may be taxed at a lower tax rate than the ordinary income tax rate. The capital gain tax rate is based on your taxable income and the type of income. Some or all capital gain may be taxed at 0%. A capital gain rate of 15% applies if your taxable income is between $89,250-$553,850 for Joint Filers and Surviving Spouses, $44,625-$276,900 for Married Filing Separately Filers, $59,700-$523,050 for Head of Household Filers, and $44,625-$492,300 for all other individual Filers. However, a net capital gain tax rate of 20% applies to the extent that your taxable income exceeds the thresholds set for the 15% capital gain tax rate. Rates for Estates and Trusts are higher. There are a few other exceptions where capital gains may be taxed at rates greater than 20%.
Net short-term capital gains (held for less than a year) are taxed at ordinary tax rates.
If your capital losses exceed your capital gains, the amount of excess loss that you can claim to lower your income is $3,000 ($1,500 if married filing separately). If your net capital loss is more than this limit, your loss will carry forward to later years.
The Alternative Minimum Tax (AMT) exemption amount is $81,300 for Single Filers, $63,250 for Married Filing Separately Filers, $126,500 for Joint Filers and $28,400 for Estates and Trusts. The income level at which the AMT exemption begins to phase out has increased to $578,151 for Single and Married Filing Separately Filers, $1,156,301 for Joint Filers and $94,601 for Estates and Trusts.
The Kiddie Tax rules apply when a child’s unearned income (investment income) is over $2,300. The amount of unearned income over $2,500 is taxed at the parents’ tax rate if that rate is higher than the child’s rate. In addition, if a child is required to file a return, the parents may qualify to elect to report the child’s income on their return instead.
The 3.8% Net Investment Income Tax (NIIT) applies to certain net investment income for Single and Head of Household Filers with Modified Adjusted Gross Income (MAGI) over $200,000, Joint Filers and Qualifying Widow(er) Filers with MAGI over $250,000, and Married Filing Separately with MAGI over $125,000. These threshold amounts are not indexed for inflation.
Additional Medicare Tax of 0.9% applies to earned income exceeding $200,000 for Single and Head of Household Filers and Qualifying Widows/Widowers with a Dependent Child, $250,000 for Joint Filers and $125,000 for Married Filing Separately.
For 2023, the exclusion of gain from the sale of a primary residence remains unchanged at $250,000 for Single Filers and $500,000 for Joint
You cannot take a charitable deduction unless you itemize. In most cases, the amount of charitable cash contributions you can deduct is limited to 60% of Adjusted Gross Income.
The maximum amount of earnings subject to Social Security Tax is $160,200 for 2023. For 2024, the maximum amount rises to $168,600.
Estates of decedents who die during 2023 have a basic exclusion amount of $12,920,000. For Estates of decedents who die during 2024, the basic exclusion amount increases to $13,610,000. The Gift Tax Annual Exclusion is $17,000 per recipient for 2023. For 2024 the Gift Tax Annual Exclusion increases to $18,000 per recipient.
For 2023, the contribution limit for Health Savings Account contributions is $3,850 for Single, Self-Only coverage and $7,750 for Family Plan coverage. These amounts increase by $1,000 for individuals 55 years of age or older. For 2024, the contribution limits are $4,150 for Single, Self-Only coverage and $8,300 for Family Plan coverage. The additional increase of $1,000 for individuals 55 years of age or older remains the same for 2024.

Individual Retirement Accounts

An individual of any age can make regular contributions to a Traditional or Roth IRA if the individual has eligible “Earned Income”.
Traditional and Roth IRA contribution limits for 2023 increase to $6,500 (if less than 50 years of age) and $7,500 (if 50 years of age or older). Your contribution may be limited based on the amount of your taxable compensation. For 2024, the contribution limits are $7,000 ($8,000).
Your Traditional IRA contributions may be tax deductible. The deduction may be limited if you or your spouse is covered by a retirement plan at work and your income exceeds certain limits.
In addition to the general contribution limit that applies to both Roth and Traditional IRAs, your Roth IRA contribution may be limited based on your filing status and income.
If you file a joint return, you may be able to contribute to an IRA even if you did not have taxable compensation as long as your spouse did. Each spouse can contribute up to the current limits. However, the total of your combined contributions cannot be more than the taxable compensation reported on your joint return. If neither spouse participated in a retirement plan at work, all your contributions will be deductible.
You may make 2023 Individual Retirement Account (IRA) contributions until your tax return deadline April15, 2024 (not including extensions).
If you contribute more than the allowed limit to your IRA, you may have an “excess” contribution and may be subject to a 6% tax for each year the excess amounts remain in the IRA. You can avoid the 6% tax by withdrawing the excess contribution by the due date of your individual income tax return (including extensions).
Beginning in 2023, the Required Minimum Distribution (RMD) age was raised from 72 to 73 years of age. This rule applies to IRAs, 401(k), 403(b) and 457(b) Plans, profit sharing plans and other defined contribution plans.

Tax Credits for 2023

The Child Tax Credit (CTC) remains the same at $2,000 per child under 17; $1,600 refundable:
- In 2023, the tax credit will be refundable only up to $1,600 – depending on your income, and you must have earned income of at least $2,500 to be eligible for the refund.
- In 2023, you can qualify for the full $2,000 Child Tax Credit if your Modified Adjusted Gross Income (MAGI) – is below $200,000 for Single Filers or $400,000 for Joint Filers. After those thresholds, the credit reduces by the same $50 for every $1,000.
- Your qualifying child must have a Social Security Number before the due date of the tax return (including extensions) to be claimed as a qualifying child for the Child Tax Credit. Children with an ITIN cannot be claimed for either credit.
Dependents who cannot be claimed for the Child Tax Credit may still qualify for the Credit for Other Dependents (COD). This is a non-refundable tax credit of up to $500 per qualifying person. The qualifying dependent must be a U.S. Citizen, U.S. National or U.S. Resident Alien. The credit is subject to a phase-out at Modified Adjusted Gross Income (MAGI) levels of $400,000 for Married Filing Jointly and $200,000 for all other Filers. You may be able to claim this credit if you have dependents who are age 18 or older, including college students, children with ITINs, or other older relatives in your household.
The Earned Income Tax Credit (EITC) is a benefit for working people with low to moderate income. To qualify, you must meet certain requirements and file a tax return, even if you do not owe any tax or are not required to file. EITC reduces the amount of tax you owe and may give you a refund. The credit is limited based on certain earned income and adjusted gross income levels. To qualify, investment income must be $11,000 or less for 2023.
The American Opportunity Tax Credit (AOTC) is a credit for qualified education expenses paid for an eligible student for the first four years of higher education. You can get a maximum annual credit of $2,500 per eligible student. If the credit brings the amount of tax you owe to zero, you can have 40% of any remaining amount of the credit (up to $1,000) refunded to you. The amount of the credit equals 100% for the first $2,000 of qualified tuition and related expenses and 25% of the next $2,000. The amount of the credit is gradually reduced (phased out) if your Modified Adjusted Gross Income (MAGI) is between $80,000 and $90,000 for Single, Head of Household and Qualifying Widow(er) Filers and between $160,000 and $180,000 for Married Filing Jointly returns. You cannot claim the credit if your filing status is Married Filing Separately. In addition, you cannot claim the same credit for more than one education benefit for the same student. If anyone in your household had qualified education expenses in 2023, you should receive a Form 1098-T Please be sure to send this form to us along with your other tax records.
The Lifetime Learning Credit (LLC) is for qualified tuition and related expenses paid for eligible students enrolled in an eligible educational institution. There is no limit on the number of years you can claim the credit. The amount of the credit is 20% of the first $10,000 of qualified education expenses up to a maximum of $2,000 credit per return, regardless of the number of students. The LLC is not refundable but can be used to offset tax liability . The amount of this credit is gradually reduced (phased out) if your Modified Adjusted Gross Income (MAGI) is between $80,000 and $90,000 for Single, Head of Household and Qualifying Widow(er) Filers and between $160,000 and $180,000 for Married Filing Jointly returns. You cannot claim the credit if your filing status is Married Filing Separately. In addition, you cannot claim the Lifetime Learning Credit for any student if you claim the American Opportunity Tax Credit (AOTC) for that student for the same year.
You may be able to take the Residential Clean Energy Credit if you made energy saving improvements to your home located in the United States in 2023. In addition, the Energy Efficient Home Improvement Credit is available to qualifying taxpayers.
Electric Vehicle Tax Credits remain in effect for 2023. If you bought a qualified plug-in electric vehicle (EV) in 2023, please supply us with the Vehicle Purchase Form that includes Make and Model, VIN, Date Purchased, and Purchase Price. Rules surrounding eligible vehicles are complex and only certain vehicles are eligible.
The Adoption Credit is a tax credit for qualified adoption expenses paid to adopt an eligible child. The credit is non-refundable which means it is limited to your tax liability for the year. However, unused credit may be carried forward for up to five years. The maximum credit amount is $15,950 per child for 2023 for qualifying taxpayers. The credit is subject to limitations based on your Modified Adjusted Gross Income (MAGI) and is not available if your filing status is Married Filing Separately.

Itemized Deductions for 2023

You may utilize the standard deduction or claim your itemized deductions, whichever is higher.
There is no limit on itemized deductions.
Unreimbursed medical expenses that exceed 7.5% of Adjusted Gross Income are deductible if you qualify to itemize deductions.
For 2023, the standard mileage rate for medical use is 22 cents per mile. Charitable traveling remains at 14 cents per mile.
The itemized deduction for state and local income, sales and property taxes is limited to a combined, total deduction of $10,000 for all Filers except $5,000 for Married Filing Separately. Any taxes you paid above this amount cannot be deducted. No deduction is allowed for foreign real property taxes.
The mortgage interest deduction is limited to interest you paid on a loan used to buy, build, or substantially improve your main home or second home. Home equity loan interest is not deductible unless used to buy, construct, or substantially improve the home that secures the loan.
The date you took out your mortgage or home equity loan may affect the amount of interest you can deduct. If your loan was incurred on or before December 16, 2017, you may deduct interest on up to $1,000,000 of qualifying debt for all Filers except $500,000 for Married Filing Separately. If your loan originated after that date, you may only deduct interest on up to $750,000 of qualifying debt for all Filers except for $375,000 for Married Filing Separately. These limits apply to the combined amount of loans used to buy, construct, or substantially improve your main home and second home. Special rules apply if you refinance your debt.
The deduction for mortgage insurance premiums has been removed for the 2023 tax year.
In most cases, the amount of charitable cash contributions you can deduct is limited to 60% of Adjusted Gross Income (AGI).
As in prior years, the deduction for personal casualty and theft losses is no longer available unless they were incurred due to a declared federal disaster. Claims must include the FEMA Disaster Declaration Number assigned to the disaster.
You cannot reduce your gambling winnings by gambling losses and report the difference. You must report the full amount of winnings as income and claim losses (up to the amount of winnings) only as an itemized deduction. If you claim the standard deduction, then you cannot reduce your gambling winnings by the losses. In addition, you must keep an accurate record of losses and winnings.

Other Deductions for 2023

Qualified student loan interest paid during the year may be deductible. You may deduct the lesser of $2,500 or the amount of interest you actually paid during the year. The deduction is gradually reduced and eventually eliminated by phase-out when your Modified Adjusted Gross Income (MAGI) amount reaches the annual limit for your filing status. The deduction is not available for taxpayers who file Married Separately.
Eligible educators can deduct up to $300 of qualified out-of-pocket expenses they paid personally during 2023 that were not reimbursed. Qualified expenses include COVID-19 protective items. The deduction is $600 (but not more than $300 each) if both taxpayers are educators and file their return jointly. You do not need to itemize to take this deduction.
Eligible taxpayers may deduct up to 20% of certain business income from domestic businesses operated as sole proprietorships or through Partnerships, S Corporations, Trusts, and Estates. See our Business Tax Tips section for further information.

Reminders

The due date for filing your personal Federal tax return is April 15, 2024. You may request an extension of time to file on Form 4868. This does not extend the time to pay your taxes. If your tax liability is not paid by April 15, 2024 (the regular due date), interest and/or a late payment penalty could apply to amounts due. If you need to file an extension and believe you will owe tax for the year, it is recommended that you include an additional tax payment with your Form 4868 extension request.
You can pay your taxes by making electronic payments. Paying electronically is convenient and secure and helps to make sure that the IRS receives your payment. To get information regarding on-line payments, go to https://www.irs.gov/payments. If you would like additional assistance, please contact our office.
Individuals of the same sex who are legally married must file their tax returns with a Married Filing Jointly or Married Filing Separately status.
Taxpayers with Foreign Bank Accounts whose aggregate value exceeds $10,000 at any time during 2023 must file Form 114 electronically with the Treasury Department of Financial Crimes Enforcement Network (FinCEN) by April 15, 2024. For Filers unable to meet this deadline, an automatic extension is granted to October 15, 2024.
In general, if you are a citizen or resident of the United States and gave monetary gifts to someone in 2023 (other than your spouse) that were more than $17,000, you are required to file a gift tax return on Form 709. The filing deadline for Form 709 is April 15, 2024. If additional time is needed to prepare the return, an extension to October 15, 2024, can be obtained. In most cases, no tax will be due with this return.
You may make 2023 Traditional and Roth IRA contributions until your tax return deadline April 15, 2024 (not including extensions).
Health Savings Account contribution deadline for Tax Year 2023 is April 15, 2024.
Please refer to the Deadlines tab on our website for other filing deadline dates.
If in 2023, you engaged in a transaction involving Digital Assets – receipt or sale (e.g., virtual currency such as Bitcoin), you will need to answer “Yes” to the question on page one of your tax return Form 1040. Please provide us with information you may have regarding these transactions.
If you have received an Identity Protection PIN (IP PIN) from IRS, please include that number with your tax information. IRS will not accept an e-filed return without the IP PIN.
If anyone in your household had a Marketplace Plan in 2023, you should receive a Form 1095-A, Health Insurance Marketplace Statement. Please be sure to send this form to us along with your other tax records. This information will be needed for us to prepare and file IRS Form 8962 with your tax return. Form 8962 is required to reconcile any advance payments that the Marketplace Plan made directly to your insurance company to reduce your monthly premium payment compared to the amount for which you qualify. The Marketplace is required to send Form 1095-A to you by mail. If you do not receive your Form 1095-A, you should contact the Marketplace from which you received coverage. If you set up a HealthCare.gov account, you may be able to get a copy of Form 1095-A online from your account.
The IRS now offers an app to check your refund status, make payments, and tax help. IRS2Go allows you to interact with the IRS on your mobile device.
To check the status of a refund, have a copy of your return in hand and go to https://www.irs.gov/refunds.
Annual Reports for all Florida corporations, including Limited Liability Companies and Professional Associations, are required to be filed with the Florida Department of State. You should receive an email from the State of Florida with the details. The 2024 Annual Report is due by 11:59 PM EST on Monday May 1, 2024. After May 1, a $400 late filing penalty will be assessed by the state. The report can be filed online at sunbiz.org.

Tax Planning Tips

The U.S. tax system operates on a pay-as-you-go basis. You need to pay most of your tax to IRS regularly during the year, as the income is earned or received. If you do not, you may owe an estimated tax penalty when you file your tax return. For 2023 tax returns, an estimated tax penalty will not apply if either of the following amounts are paid through withholding or by timely filed and paid estimated tax payments for Tax Year 2023: (1) at least 90% of the tax shown on the filed 2023 return, or (2) 100% of the tax shown on your 2022 return or 110% if 2022 Adjusted Gross Income was greater than $150,000 for all Filers except $75,000 for Married Filing Separately.
Beginning in 2023, the RMD age was raised from 72 years to 73 years of age. If you do not take any distributions, or if the distributions are not large enough, you may have to pay a 50% excise tax on the amount not distributed as required.
If you are required to take a Required Minimum Distribution (RMD) during the year, you may be able to make a Qualified Charitable Distribution (QCD) by transferring monies to a charity directly from your IRA account. The maximum amount that can qualify for a QCD is $100,000. This applies to the sum of QCDs made to one or more charities in a calendar year. If you file taxes jointly, your spouse can also make a QCD from his or her own account. The money will count toward your RMD but is not included in your taxable income. You can only make this type of transfer from an IRA account and the money needs to be a direct transfer from your account to the eligible charitable organization(s). You cannot write a check yourself. You must contact the administrator that holds your IRA account and instruct them to make the donation for you. If you make a tax-free transfer to charity, you cannot deduct the money as a charitable deduction if you itemize. When making a QCD, you must receive the same type of acknowledgement of the donation that you would need to claim a deduction for a charitable contribution. If you do not itemize your deductions, then this may be a way to get a tax benefit.