Tax Stuff to Know For 2023 Tax Returns
Jan 2, 2023 21:05:38 GMT
thekloset, denise15601, and 2 more like this
Post by val2525 on Jan 2, 2023 21:05:38 GMT
Thought I'd post this for those of you who actually do track income/estimated taxes throughout the year. 
First, for easy reference - the due dates for estimated tax payments for your federal personal income tax return (many states follow the same schedule, but check at your state's Tax & Revenue website to be safe):
If you aren't set up to make electronic tax payments, you might want to go to www.eftps.gov/eftps/ and enroll. You use your SSN. It's easy and free to enroll and use. Many states also offer a similar online service (in many cases, it's the same website/login you probably already use to report sales tax).
Mileage rate has increased to 65.5 cents per mile.
www.irs.gov/newsroom/irs-issues-standard-mileage-rates-for-2023-business-use-increases-3-cents-per-mile
Business meal deduction is back to 50%. It was 100% in 2021 and 2022.
Standard deduction has been increased (this may affect your estimated payment calculatations):
Additional deduction for seniors has also increased (this may affect your estimated payment calculations):
Tax brackets have been expanded and lowered in some cases (this may affect your calculations for quarterly estimated payments).
If you work and collect Social Security, the earnings caps have been increased for 2023:
In 2023, retirees receiving Social Security benefits will be able to earn $56,520 in the year they reach full retirement age before their benefits are reduced by $1 for every $3 in earnings over the limit. That figure is an increase from $51,960 in 2022.
Beneficiaries younger than full retirement age can earn up to $21,240 in 2023 before their benefits are reduced by $1 for every $2 in excess earnings, up from $19,560 in 2022.
Remember, your estimated payments include estimated self-employment tax AND estimated income tax (two different taxes, at different rates). Self-employment tax is a flat 15.3% of NET income on your Schedule C(s) business(es). Federal income tax that is due is based on your total gross income (W2 wages, net self-employment income, social security income, retirement income etc) less all applicable deductions. That tax rate is determined by looking at the Marginal Tax Bracket chart. You add the esimated two amounts together to determine your estimated tax payment.
First, for easy reference - the due dates for estimated tax payments for your federal personal income tax return (many states follow the same schedule, but check at your state's Tax & Revenue website to be safe):
If you aren't set up to make electronic tax payments, you might want to go to www.eftps.gov/eftps/ and enroll. You use your SSN. It's easy and free to enroll and use. Many states also offer a similar online service (in many cases, it's the same website/login you probably already use to report sales tax).
Mileage rate has increased to 65.5 cents per mile.
www.irs.gov/newsroom/irs-issues-standard-mileage-rates-for-2023-business-use-increases-3-cents-per-mile
Business meal deduction is back to 50%. It was 100% in 2021 and 2022.
Standard deduction has been increased (this may affect your estimated payment calculatations):
Additional deduction for seniors has also increased (this may affect your estimated payment calculations):
Tax brackets have been expanded and lowered in some cases (this may affect your calculations for quarterly estimated payments).
If you work and collect Social Security, the earnings caps have been increased for 2023:
In 2023, retirees receiving Social Security benefits will be able to earn $56,520 in the year they reach full retirement age before their benefits are reduced by $1 for every $3 in earnings over the limit. That figure is an increase from $51,960 in 2022.
Beneficiaries younger than full retirement age can earn up to $21,240 in 2023 before their benefits are reduced by $1 for every $2 in excess earnings, up from $19,560 in 2022.
Remember, your estimated payments include estimated self-employment tax AND estimated income tax (two different taxes, at different rates). Self-employment tax is a flat 15.3% of NET income on your Schedule C(s) business(es). Federal income tax that is due is based on your total gross income (W2 wages, net self-employment income, social security income, retirement income etc) less all applicable deductions. That tax rate is determined by looking at the Marginal Tax Bracket chart. You add the esimated two amounts together to determine your estimated tax payment.
