Weekly Update – April 7th, Happy Passover and Easter 2023
It’s been another crazy, busy week between the holidays and the countdown to the April 18th tax filing deadlines. I am so glad to have good friends who are the family we choose; who we joined for a seder on the first night of Passover enjoying a night of tradition, laughter and great food, what could be better…
These concrete and steel bulkheads are being installed along the back of the beach under the berms as part of a $600 million multi-year project to protect the rockaway beach shore line.
Even those of us who are “chained to our desks are enjoying these longer sunlight days with sunrise around 6:30 AM, I am hoping you have great plans to enjoy Passover and Easter 2023.
WEEKLY TAKE AWAY
Why are we working so hard and putting in many hours during peak work times? No matter how busy we are there’s always time for the things that make life worth living. I see this so clearly as I spend time with family and friends during the spring holidays of Passover and Easter; these holidays always coincide with my busy season and major work deadlines. As we sat around the Passover table Wednesday evening we made plans to get together for pizza and wine on our friend Mindy’s front porch which has a great view of the beach, can’t wait!
TAX ISSUES/TAX PLANNING
Last Minute Checklist:
- Connect with your CPA or professional tax preparer: a good adviser saves you more in tax savings, stress and aggravation than the professional fees they charge.
- Review your paperwork, both income and potential deductions: rushing your return out allows for the potential to file with incomplete information. This leads to potential penalties, notices and/or missed opportunities.
- Consider a direct investment in savings bonds via Form 8888 rather than requesting a tax refund
- Consider the benefits of a 2022 traditional IRA vs ROTH contribution short term vs long term, there is still time to contribute until April 18th 2023. Remember to inform your banker that this contribution is for 2022.
Deadline for Estimated Federal Tax Payments: April 18th 2023
Self-employed individuals, retirees, investors, businesses, corporations and others who make estimated tax payments should be reminded that the payment for the first quarter of 2023 is due Tuesday, April 18. The 2023 Form 1040-ES, Estimated Tax for Individuals, can help you estimate your first quarterly tax payment.
Reminder: The Automatic 6-Month Extension to File is NOT an Extension of Time to Pay
If you’re unable to file your tax return by the April 18 deadline, file an extension which gives you until October 16th to file your 2023 tax return. Remember this is an extension of time to file, not an extension of time to pay! As they say the proof is in the pudding; the real challenge is calculating your balance due and finding the funds to make the required payment.
EV Tax Credit Rules Make Many Vehicles and Taxpayers Ineligible
The US Treasury Department has released new EV tax credit guidelines, limiting the number of vehicles that can qualify for the tax break which is worth up to $7,500. In addition income limitations for purchasers still apply:
The credit is available to individuals and their businesses, to qualify, you must:
- Purchase the vehicle for your own use, not for resale
- Use it primarily in the U.S.
- Your modified adjusted gross income (AGI) can not exceed:
- $300,000 for married couples filing jointly
- $225,000 for heads of households
- $150,000 for all other filers
You can use your modified AGI from the year you take delivery of the vehicle or the year before, whichever is less. If your modified AGI is below the threshold in 1 of the two years, you can claim the credit.
The credit is nonrefundable, so you can’t get back more on the credit than you owe in taxes. You can’t apply any excess credit to future tax years. For more details see our January 27th blog post.
IRS Strategic Plan for their 80 Billion Dollar Budget; U.S. Department of the Treasury Press Release:
Copied and pasted from the April 6, 2023 U.S. Department of the Treasury Press Release:
Yesterday the U.S. Treasury Department and Internal Revenue Service (IRS) released the Strategic Operating Plan, a comprehensive roadmap to transform the IRS using Inflation Reduction Act resources. The Strategic Operating Plan shows how the IRS will use these long-term resources to provide taxpayers with world-class customer service and reduce the deficit by hundreds of billions by improving enforcement among high-income and high-wealth individuals, complex partnerships, and large corporations that are not paying the taxes they owe.
“Thanks to Inflation Reduction Act resources, the IRS is already delivering significantly improved customer service this filing season. The Strategic Operating Plan shows how the IRS will continue this transformation by providing world-class service, upgrading decades-old technology, and reducing the tax gap by ensuring high earners play by the same rules as working and middle-class families,” said Secretary Janet L. Yellen.
The Strategic Operating Plan details five objectives to achieve the goal of providing world-class service and reducing the deficit by hundreds of billions:
- Dramatically improve services to help taxpayers meet their obligations and receive the tax incentives for which they are eligible
- Quickly resolve taxpayer issues when they arise
- Focus expanded enforcement on taxpayers with complex tax filings and high-dollar noncompliance to address the tax gap
- Deliver cutting-edge technology, data, and analytics to operate more effectively
- Attract, retain, and empower a highly skilled, diverse workforce and develop a culture that is better equipped to deliver results for taxpayers
The Plan also complies with Secretary Yellen’s directive that IRA resources will not be used to raise audit rates for small businesses and households making less than $400,000 a year, relative to historical levels.
Saturday Hours for IRS Taxpayer Assistance Centers
The IRS has announced that it will open many of its Taxpayer Assistance Centers (TACs) around the country on Saturday, April 8, for face-to-face help with tax matters. During these special openings, taxpayers can get walk-in services for in-person help on many tax issues, except for making cash payments and tax return preparation.
Why did Several US Banks Fail
In this video, CNBC discusses the collapse of several banks and the impact it has had on the economy, with over 550 banks failing since 2001 according to the FDIC.
GM Reports a First Quarter 18% Rise in US Sales
General Motors announced that its US sales for the first quarter of 2023 have increased by 18% YoY, with over 600,000 vehicles delivered. The company also confirmed plans to build 50,000 EVs in the first half of 2023 and double that in the second half.
Tesla Shares Drop as Investor Concerns Grow
Tesla’s shares fell by 6% on Monday as the company’s latest delivery report showed some investors’ concerns about further price cuts to drive sales, eating into the margins.
McDonald’s Lays off Corporate Workers to Focus on Expansion Plans
McDonald’s is laying off corporate employees despite solid sales, as it focuses on expansion and new locations in the US and Europe. The layoffs are expected to trim and consolidate teams that don’t align with the company’s priorities, including innovations like order-ahead drive-through systems.
- IRS resources for stimulus payments:
- Use the Get My Payment tool to check on EIP payment status
- Eligibility and general information about Economic Impact Payments
- A list of frequently asked questions for stimulus payments
- IRS information about the Advance Child Tax Credit Payments
- Portal to update information
- A list of frequently asked questions on the advance Child Tax Credit Payments
- The best source for up-to-date and accurate health information is the Center for Disease Control (CDC)
- Our prior blog posts, videos and prior weekly newsletters
- Entrepreneur put together a listing of free tech resources for remote work
- The Consumer Financial Protection Bureau has warnings about COVID-related scams
- The New York Times has an online newsletter on K-12 and higher education
- The Wall Street Journal has a collection of articles on education
- The Louvre has digitized 482,000 artworks from its collection
- How to create a strong password
We sincerely hope that you and your family are well and remain well. If you have any questions or concerns, don’t hesitate to reach out to us. We are here for you.
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