Dear Clients and Friends:
B & R Tax Accounting Service would like to wish all of you a very safe, happy and healthy Holiday season!! We always appreciate your business and continue to strive to help you in any way we can. Following are some items that are more pertinent issues whether new from the INFLATION REDUCTION ACT OF 2022 or carryovers from last year from CARES ACT changes affecting 2022 Returns.
- The standard mileage rate for 2022 was 58.5 cents per mile before July 1st and 62.5 cents after June 30th.
- Retirement Changes:
- Retirement plan early distributions: Reminder for those who split the distributions to be claimed over three years: this is the year the last 1/3 amount is to be reported. If the repayment has been done, the amount repaid in 2022 must be reported.
- Contribution limits for 2023: 401(k) $22,500-under age 50; $7,500 Catch-up amount for over age 50. IRA $6,500- under age 50; $1,000 catch-up amount for over age 50.
- Net Operating Loss (NOL)- FEDERAL: The 2021 carryback has expired, cannot exceed 80% of taxable income and can only be carryforward. ILLINOIS- Amount cannot exceed $100,000 and can carry forward 20 years.
- Depreciation- IL will no longer allow 100% bonus depreciation like Federal, depreciation will recalculate using MACRs.
- For tax year 2022 ALL W-2’s and 1099-NEC’s MUST be filed with the government and sent to the employees and subcontractors by January 31, 2023.
- 2022 Tax Due Dates:
March 15, 2023 – Partnership, LLC and S-Corporation tax returns
April 18, 2023 – Personal tax returns, Sch. C sole proprietor and C-Corporation returns
We have always strived to provide a quality service at a reasonable fee. Five years have passed since we last increased our fee for sales tax returns, payroll tax deposits and quarterly payroll tax returns. Unfortunately, our clients with these services will notice a slight increase in 2023.
It is our sincere hope that you will continue to put your trust in B&R Tax Accounting allowing us to handle your tax preparation needs. We remain a full-service tax and accounting firm in the same location as always. Please pass a copy of this letter along to your family or friends, as B & R Tax will be happy to assist them in the preparation of their tax returns.
Best wishes to you all for a healthy, successful and Happy New Year in 2023! Go to www.bandrtax.com for more information other current tax updates, forms and reminders.
B & R TAX ACCOUNTING SERVICES