Here are a wide variety of general tax matters, from property taxes to income taxes, as they will play out in 2023.
Secured Property Tax
This is the tax paid on tangible property like buildings and houses. It is paid twice a year: December and April. It is a county tax based on a blend of the cost and the market value of the property. Specific detail is listed on the tax bill received each year. If you own a building or a house, then this is applicable to you.
Unsecured Property Tax
This is a business tax on tangible business property like computers, and machinery. It is self-assessing each April based on assets in the business as of December 31 of the prior year. The tax rate is about 1.5%. It is paid each August as a one-time payment. Every business will generally have some business assets like computers or machinery. This one should be on everyone’s calendar.
Payroll Tax – Year End
Just a reminder about payroll taxes. The last monthly deposit for monthly depositors is January 16th. Form W-2s must be distributed to employees by January 31.
Form 1099-NEC
The Form 1099-NEC is due for any workers who are not on payroll by January 31.
From 1099-K
Form 1099-K is issued for anyone processing invoices through merchant services. The limit for 2022 is $600 or more. Form 1099-K must be distributed by January 31. Generally, the company, like PayPal, MasterCard, and Visa will be issuing to you. If you process Debit Card transactions in your business, you may be getting a statement from the processor as well.
Other 1099 forms
There are a wide variety of Form 1099s for various purposes. These are typically due at the end of February but should be confirmed as paper filing is a different filing date from electronic filing.
Income taxes
Income tax estimates for both individual as well as business.
The fourth quarter estimates for calendar year businesses as well as individuals is January 15, 2023, adjusted for the weekend. There are a wide variety of circumstances to either make or not make this due date.
In the new year, 2023, please be aware that the usual quarterly dates are April 15, June 15, September 15, and January 15, 2024. Generally, estimates are calculated with your 2022 tax returns. If the tax return is going on extension, it is important to consider if estimates should be made during the extension period.
Filing dates for income tax returns
These dates have changed in recent years. Partnerships and S Corporations are due March 15. If put on extension, the extended due date is September 15.
Individual and C Corporations are due April 15. If put on extension, the extended due date is October 15. If a C Corporation is a fiscal year-end, the due date is the 15th day of the fourth month of the fiscal year.
It is best to get the accounting into us as soon as possible each year, with generally a month before the due date to be the best.
Tax return extensions
As many of you know, a tax return can be put on an extension. Please remember that it is an extension to FILE, not an extension to PAY. It is best to prepare an estimate of any tax that may be due and pay it with the extension. In recent years, I have seen some extensions rejected because a reasonable estimate was not PAID at the time the extension was FILED.
Questions?
I can be reached at Bruce@CannabisCPA.Tax or 818-225-8022.
