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.