(303) 499-7445 info@tandemcpas.com

Year-end Reminders

General Information

  1. Do you have an LLC? Most LLCs are required to register their ownership with the government in 2024. See here for more info: https://www.fincen.gov/boi/small-business-resources   Penalties for failure to do so are stiff.
  1. 1099-K Reporting – You may receive these forms from Paypal, Venmo, Zelle or other websites reporting funds received during 2023 due to new reporting requirements.  Please provide these forms to us even if you believe the funds received are not taxable.
  1. Tax scamsWe want to alert you that fraud relating to tax returns is on the rise. Many scammers are claiming to represent the IRS and threatening fines, jail, and/or revoking licenses.
  • If you get any phone calls claiming to be from the IRS, hang up. It is not the IRS.
  • If you get a call from a bill collector claiming to represent the IRS, give no information. Get a call back number and contact us so we can determine if it is legitimate.
  • If you get any mail from the IRS, please upload a copy to your portal or drop off a copy to us before responding.
  1. Tax Planning can be especially useful if you are considering making a Roth conversion or a large charitable contribution; if you have a health care advanced premium credit; a January estimated tax payment; or are considering other items that need to be done before the end of the year. If interested, please contact us soon so we can give you recommendations in time to implement before year-end.
  1. Social Security Wage Limit – As of 1/1/23, the Social Security wage base increased to $160,200 (up from $147,000 in 2022).  The wage base for 2024 is $168,600.
  1. Federal Standard Deduction – The 2023 federal standard deduction is $13,850 single, $20,800 head of household and $27,700 married filing jointly.  Taxpayers 65 and older receive an additional $1,850 single and $3,000 married filing jointly.
  1. Estimated Tax Payments – If you are paying estimated taxes for 2023, the final federal and state payments are due 1/16/24. We recommend making payments online due to the backlog in opening mail by the IRS and Colorado.  If you wish to pay via check, please include the estimated tax payment voucher and include on the memo line of the check the taxpayer’s social security number and the phrase “2023 estimated tax payment.” Mail via USPS certified mail for proof of timely payment.  If you are filing with your spouse, be sure to use the name and social security number of the first person listed on your tax return.
  1. Investment Accounts – If you own stocks, bonds, or mutual funds outside of retirement accounts, talk to your financial advisor about loss harvesting – selling securities that have lost value to offset any capital gains from 2023. In addition, up to $3,000 of additional capital losses can offset other taxable income each year.
  1. 401(k) Employee Contributions – 2023 contributions must be made through payroll by 12/31/23.
  • 2023 max contribution for individuals participating in 401(k), 403(b) and most 457 plans is $22,500 or $30,000 for individuals 50 and over.
  • 2024 max contribution for individuals participating in 401(k), 403(b) and most 457 plans is $23,000 or $30,500 for individuals 50 and over.
  1. IRA Contributions – Contributions for tax year 2023 can be made through 4/15/24.
  • 2023 max IRA contribution $6,500, $7,500 for 50 and older.
  • 2024 max IRA contribution $7,000, $8,000 for 50 and older.
  1. HSA Contributions – If you have a High Deductible Health Plan (HDHP), making an HSA contribution is a great tax saving measure.  Contributions for tax year 2023 must be made by 4/15/24.
  • 2023 contribution limits:
    • $3,850 self
    • $7,750 family
    • $1,000 catch up for 55 and older
      • $4,850 self
      • $8,750 family
  • 2024 contribution limits:
    • $4,150 self
    • $8,300 family
    • $1,000 catch up for 55 and older
      • $5,150 self
      • $9,300 family
  1. Back-Door Roth Contributions – If your income is too high to contribute to a Roth IRA, there is an option to make a non-deductible IRA contribution and then convert to a Roth IRA. This works well if you don’t have any other taxable IRA accounts with balances (including a rollover from a former employer to an IRA or a SEP or SIMPLE IRA).

(303) 499-7445

info@tandemcpas.com

287 Century Circle, Suite 200, Louisville, CO 80027

Tandem CPAs LLC  (Colorado firm license #FRM.5000548).

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