Getting an Extension is more than Just Buying Time
May 31, 2022
First Quarter Tax News and Reminders
As tax season begins, we’d like to share recent tax regulation changes and important deadlines. Please reach out to us if you have any questions and keep the following in mind when organizing your tax documents:
Retirement Planning
In December, Congress passed the Securing a Strong Retirement Act of 2022 (SECURE 2.0) that includes changes that went into effect January 1st which could help improve retirement planning. Among those changes are:
- The Required Minimum Distribution (RMD) must now be taken at the age of 73.
- There is an increase in tax incentives for small employers (under 50 employees) to start new retirement plans - with a credit increased to 100% of administrative costs.
- Eligible businesses with up to 100 employees can be entitled to a tax credit based on their employee matching or profit-sharing contributions for those making less than $100,000 per year. This credit caps at $1,000 per employee.
Third-Party Payers on 1099-K Forms
New rules under Form 1099-K now require third-party apps such as Venmo and PayPal to issue Form 1099-K when payments on these platforms exceed $600. This is a significant change since it was previously issued when payments reached $20,000 or receiving 200 transactions.
Child Credit News
Enhancements made to the child credit under the American Rescue Plan Act of 2021 were only temporary. The rules for taking the child credit for 2022 revert to what was in place for 2020. The 2022 child tax credit is $2,000 per child under the age of 17 claimed as a dependent. The credit is no longer fully refundable and 17-year-old children no longer qualify.
Estimated Tax Payments
Estimated tax payments for 2022 fourth quarter were due January 17th but you can still make these payments. It is important that you keep a record of these payments and let us know when you have submitted them. The IRS will credit you on the date the payment was made. To minimize additional interest and penalties for under payment, pay 110% of what was owed for 2021 or 90% of your 2022 estimated payments if you did not pay quarterly.
January 31, 2023 - Businesses Tax Reporting
The deadline is January 31st to send 1099 forms to report nonemployee compensation to individuals, including 1099-NEC, 1099-MISC and 1099-K. These should be issued to any independent contractors, gig workers; self-employed individuals that received payments who are a sole proprietor or member of a partnership or LLC, with payments of $600 or more in 2022.
W-2 forms for 2022 wages should be mailed out to employees no later than January 31st. While employees may not receive them in the mail on this date, they must – at the very least – be sent out at this point. W-3 forms are also due to the Social Security Administration by January 31st.
Form 940 “Employer's Annual Federal Unemployment Tax Return” (FUTA), Form 944 “Annual Reporting of Wages Paid and Employment Taxes,” and lastly Form 945 "Annual Return of Withheld Federal Income Tax" (Backup withholding) are all due by January 31st.
January 31 - Local Taxes
School and property taxes for many local municipalities usually have a payment due by January 31st. If your mortgage company or other representative is not automatically paying these on your behalf, you should verify balances due and payment details with your local tax receiver’s department.
February 15, 2023
If you chose to claim an exemption from your employer withholding taxes from your paycheck in 2023 by filing a Form W-4, you’ll need to re-file a new Form W-4 for 2023 by February 15th.
Hurricane Ian victims in Florida, North Carolina and South Carolina that filed to extend their 2021 federal tax returns out to October 17, 2022, now have until February 15, 2023, to file any returns and remit tax due.
February 15, 2023 - Businesses
February 15th is the filing deadline for Form 1099-B, 1099-S and Form 1099-MISC for those which payments in Box 8 or Box 10 are being reported.
February 28, 2023 – Businesses
This is the filing deadline for Form 1098, Form 1099, Form W-2G and transmittal Form 1096 for interest, dividends and miscellaneous payments made during 2022 (other than those with a February 1st or February 15th deadline).
March 15, 2023 - Businesses
The deadline for business tax returns to request an automatic six-month extension is March 15th. This includes S corporations, multi-member LLCs and partnerships.
It is also the deadline to request an extension for filing New York State and New York City Pass Through Entity Tax (PTET) for the 2022 tax year. March 15th is also the deadline for the NYS & NYC PTET election for tax year 2023.
If you have questions or need assistance filing any of these forms, please contact our office at accounting@hvandpartners.com or 914-617-7620 and we will direct your call so we can better serve you.
- Hart Vida & Partners
Westchester Office:
400 Columbus Avenue
Suite 100S
Valhalla, NY 10595
Fax: 914-666-2549
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