Tax Tips and Resources for 2023
Before I jump into my handful of tax tips for this year, I have a confession.
For the first time, I procrastinated on my own taxes. What is usually a gradual tax prep process over a few weeks, I recently found myself doing all in one day. Even for someone who knew what I needed (and where I could find it), it was daunting to accomplish in such a short time.
Part of my procrastination was because I stopped holding myself accountable for classifying my mileage monthly (even though it was still auto-tracking). It took me a bit to find all my filed tax paperwork for the CPA (estimated payments, 1099s, payroll, etc.), and life just kept popping up.
As business owners (and humans), these things happen to the best of us, but there are systems you can put in place to stay on top of this.
This is why I’m a HUGE advocate for prepping and planning, especially when it comes to tax season.
I greatly advocate offering yourself grace and compassion when these challenges arise. If you find yourself behind or not prepared enough, it’s OK. Do the hustle now and commit to getting it done with ease next year.
Now, on to the tips and resources for 2023!
2023 UPDATES & RESOURCES
IRS Mileage Reimbursement
IRS mileage reimbursement went up mid-year in 2022. To file accurately, you’ll need to know what portion of your business miles are from July 1 – Dec 31, 2022.
Bonus tip for next year related to mileage: learn from my procrastination and make sure you classify your mileage monthly. Not just auto-tracking it (though, definitely set that up if you haven’t already) but making sure you’re routinely designating the trips as business or personal miles.
Employee Retention Tax Credit (ERTC)
The ERTC was extended and typically means you’ll need to refile your prior 2021 tax filings. Check-in with your CPA to see if you qualify.
For reference from the IRS: The Employee Retention Credit is a refundable tax credit for businesses that continued to pay employees while shut down due to the COVID-19 pandemic or had significant declines in gross receipts from March 13, 2020, to Dec. 31, 2021. Eligible employers can claim the ERTC on an original or adjusted employment tax return for a period within those dates.
Know your CPAs Internal Deadlines
Just because taxes are due mid-April does not mean you can turn everything in the week before. If you do, you’ll likely be told you’ll have to file an extension. Ensure you’ve built their deadlines into your process to ensure a seamless tax season.
CPA Recommendations
If you’re looking for a CPA, I’m happy to recommend several trusted firms and individuals based on your specific needs. Just ask!
5-Step Business Owner Tax Prep Checklist
On the blog last year, I offered five action steps to take while preparing your tax information. A comprehensive list depends on your business and how you are filing. However, the more prepared you are, the smoother your tax preparation will go.
MAKE NEXT YEAR’S TAX PREP EASIER
No matter where you are with taxes, when you’re reading this, know what Lighthouse Advisory is cheering you on! If you find yourself curious about getting support to make next year’s taxes run smoother, take action today and schedule your complimentary consultation here. Let us help you reach your business objectives and achieve your full potential (without the tax time hustle).
