With tax filing just around the corner, now is a great time to look through your tax filing plan for 2023. Here are some ideas:
Collect and upload your documents to your portal. Missing documents - even just one - is a significant reason why filing a tax return is delayed. Documents you’ll need include K-1s, W-2s, 1099s and other forms you receive from your business, employers, brokers, banks and others. If you detect any errors, contact the sender immediately to request a corrected copy. We will alert you to any documents that are missing based on the previous year filing, but any new taxable events and/or accounts we will not have record of, so make sure to include those forms.
Put a due date reminder on your calendar. Mark April 15, 2024 on your calendar as the due date for filing your 2023 individual tax return, and gift tax returns; making contributions to a Roth or traditional IRA for 2023; and for paying the first installment of 2024 individual estimated taxes.
Remember deadlines for business returns. If you own a business or are in a partnership, the deadline for filing partnership and S corporation returns is March 15. Calendar-year C corporation tax returns are due by April 15. Six-month extensions can be requested for partnerships and corporations.
Keep great donation records. Cash contributions under $250 require a bank record like a canceled check, credit card record or a receipt from the charity. For larger donations, a receipt from the charity must be obtained before filing your return. Donations of property should include a photo, a receipt from the charity and a detailed listing of the items donated that are in good or better condition.
Review your child’s income. Your child may be required to file a 2023 income tax return. A 2023 return is generally required if your child has earned more than $13,850, or has investment income such as dividends, interest, or capital gains that total more than $1,250.
Contribute to retirement accounts. There’s still time to make 2023 IRA contributions — up to April 15, or until you’ve contributed the maximum allowed. That’s the lesser of your earned income for 2023 or $6,500 ($7,500 if you’re 50 or older).
Calculate your estimated tax if you need to extend. If you file an extension, you'll still need to do a quick calculation to estimate your 2023 tax liability. If you still owe Uncle Sam any money, you'll need to write a check by April 15. Remember, filing an extension is only an extension of time, not of payment, so any balance due may result in penalties and interest.