TAKE FINAL ACTION TO AFFECT YOUR 2022 TAXES
December 1 – Time for Year-End Tax Planning
December is the month to take final actions that can affect your tax result for 2022. Taxpayers with substantial increases or decreases in income, changes in marital status or dependent status, and those who sold property during 2022 should call for a tax planning consultation appointment.
December 12 – Report Tips to Employer
If you are an employee who works for tips and received more than $20 in tips during November, you are required to report them to your employer on IRS Form 4070 no later than December 12. Your employer is required to withhold FICA taxes and income tax withholding for these tips from your regular wages. If your regular wages are insufficient to cover the FICA and tax withholding, the employer will report the amount of the uncollected withholding in box 12 of your W-2 for the year. You will be required to pay the uncollected withholding when your return for the year is filed.
December 31 – Last Day to Make Mandatory IRA Withdrawals
Last day to withdraw funds from a Traditional IRA Account and avoid a penalty if you were born before January 1, 1951. You may delay your first distribution to April 1, 2023 if your birth date is during the period January 1, 1950 through December 31, 1950. If you are required to take a distribution in 2022 and the institution holding your IRA will not be open on December 31, you will need to arrange for withdrawal before that date.
December 31 – Last Day to Pay Deductible Expenses for 2022
Last day to pay deductible expenses for the 2022 return (doesn’t apply to IRA, SEP or Keogh contributions, all of which can be made after December 31, 2022).
December 31 – Caution! Last Day of the Year
If the actions you wish to take cannot be completed on the 31st or a single day, you should consider taking action earlier than December 31st.
This blog is meant for educational purposes only. Articles contain general information about accounting and tax matters and is not tax advise and should not be treated as such. Do not rely on information from this website as an alternative to seeking assistance from a certified tax professional. Perlinger Consulting partners with certified tax professionals to assist our clients.