Hello ☘ March.
Your 2023 arrival is welcome, officially bringing us spring and getting us closer to the end of the main tax filing season. In fact, it's even closer, since this third month of the years also has us spring forward into Daylight Saving Time. So let's not waste any more precious hours and, ahem, march right into this month's tax tasks.
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March 1: It's the last full month of the tax-filing season, so that's a good reason to come at our taxes in the proverbial like a lion March entry mode. The first thing to attack like the feline king is the gathering of all the tax statements you'll need to fill out your 2022 return. This includes the paper ones that you tossed on a stack when they arrived, as well as those sent electronically and that you need to download or at least look at.
March 6: Official tax statements aren't the only things you'll need to help you file. Other documents have information that's relevant to your tax return. So are the answers to some basic life questions. This tax checklist can help guide you as you work on your return. And don't forget about your previous tax return. That prior tax year filing is a good template, especially if your tax life hasn't changed that much.
March 10: Do you work as a server at a restaurant or at any other establishment where gratuities from customers are part of your compensation? I hope you got lots of financial thanks for doing your job well, but remember that those tips are taxable income.
Whether you're dining in or, still COVID leery and getting food delivered to your home, if a tip isn't included on your restaurant or delivery bill, click the image above to calculate how much to tip the person who brought it to you.
If you got at least $20 in gratuities in January, you must account for the tips today by using
Form 4070 to report last month's tips total to your employer.
March 12: Feeling a bit tired after losing an hour of sleep earlier this morning? I'm right there with you. But I do love the extra end-of-day sunshine.
We can use that late-day natural light to work on our tax returns, including
state filings if you, like most U.S. residents, live where state (or District of Columbia) personal income taxes are collected.
March 15: This date is more than a
literary reference. The
Ides of March apply each year to many business taxpayers. Today is the
tax filing deadline for partnerships (Form 1065 with K-1 or K-3 schedules) and S corporations (Form 1120S, again with the K schedules).
March 17: Erin Go Bragh and
Happy St. Patrick's Day!
via GIPHYEnjoy this day, but don't trust lucky charms to get you through tax filing season. Double check your 1040 to ensure you haven't
overlooked any tax breaks or made any common
filing mistakes.
March 20: Spring has sprung!
That means it's time for
spring cleaning. Your gifts won't help with your current tax return, but they could pay off next year as
charitable donation deductions if you itemize.
March 27: If you have a tax-deferred retirement account, such as a traditional IRA or workplace regular 401(k), and are in your 70s, you could be facing a required minimum distribution (RMD) due date in just more than a week. If you turned 72 last year and didn't take your initial RMD by
Dec. 31, you must do so by April 1. A quick planning note, too, for septuagenarian savers not yet facing RMDs. These mandatory distributions this year
kick in when you celebrate your 73rd birthday, thanks to the new SECURE 2.0 retirement law.
March 31: This is it. March is over, which for taxes means you best shed your
out like a lamb attitude and get to work on your Form 1040. The IRS recommends we file electronically, which will speed up processing of returns and issuance of any refunds. The tax agency also urges taxpayers to check out
Free File, the no-cost online preparation and electronic filing web page for eligible taxpayers created by the IRS' partnership with the Free File Alliance. This year,
seven tax software companies are participating.
The Free File income threshold this year remains at adjusted gross income (AGI) of $73,000 or less, regardless of your
filing status.
Small Business Tax Calendar: Important
filing, deposit and record keeping dates throughout the year that your company needs to know. You can get more tax calendar information at the IRS'
online calendar page and view the full year's important business and individual tax dates in
IRS Pub. 509.
Midwesterners who are coping with flooded homes and businesses have one less thing to worry about right now.
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