Find out everything you ever wanted to know about starting off on the right foot for the 2023 tax year, brought to you straight from your friends at Woodbridge-based JS MORLU, LLC.
A common question parents have is, “How might I save for a child’s post-secondary education in a tax-beneficial way?” The answer depends on how much the education is expected to cost and how much time is left until the child heads off to college or a university or enters an apprenticeship program.
When it comes to transactions between family members, the tax laws are frequently overlooked, if not outright trampled upon. It is better to structure a transaction within the parameters of tax law in the first place than suffer unexpected consequences afterward.
The tax code provides a variety of ways to defer or even avoid taxes on current income. These include tax-beneficial retirement plans, taking advantage of capital gains tax on asset appreciation, tax-advantaged education savings plans, health savings accounts and income deferral opportunities. Understanding these programs can provide the key to significant tax advantages.
Keeping up with the constantly changing tax laws can help you get the most benefit out of the laws and minimize your taxes. Many tax parameters, such as the standard deduction, retirement plan contributions, and tax rates, are annually inflation-adjusted, while some tax changes are delayed and take effect in future years.
For 2022, partnerships and S-corporations are not required to file the lengthy Schedules K-2 and K-3 if they qualify for either the domestic entity exception or the Form 1116 exception, both of which require actions by individual partners or shareholders.
If your cost for employer-provided health insurance for your family will exceed 9.12% of your household income in 2023, under revised IRS rules your family members may qualify to purchase their coverage from a government health insurance marketplace and offset some of the premiums with the Premium Tax Credit.
If you use workers other than employees to perform services for your business and pay them $600 or more for the year, you are required to issue each of them a Form 1099-NEC after the end of the year to avoid facing the loss of the deduction for their labor and expenses.
