Preparing for tax day
Current Tax rates
Current rates information provided by IRS
Tax documents to upload to the client portal:
- Any and all W2s, 1098s, 1099, 8606 and 1095s and other statements of income
- Payment receipts for any estimated tax payments made for FY2022
- 1099-G if you received unemployment benefits in 2022
- Business expense records if self employed
- Rental property information – rents, expenses, statements, purchase/sales closing documents
- Charitable donation statements (tallies of long lists always appreciated!)
- Health coverage payments and/or 1095 for self employed
- Medical expenses
- Retirement contribution information
- Investment account statements if a distribution was received. If no distribution received, only for Traditional or Roth IRAs
- Images of front and back of current driver’s license or state ID
- Prior year return (new clients only)
- Updated address information if you have moved in the last year
- Updated dependent information if anything has changed since last year
- Home office deductions for Schedule C filers
- Contributions to College Savings Plans, HSAs, etc.
- Screenshots of payment confirmations or IRS letters received
- Word document with any outstanding questions and notes, bank information, and tax agency login information
FY2022 Tax Step-by-Step
- Receive and sign your engagement letter via Hellosign. In the past, these have been a part of the signature process upon approval of your return. Going forward with FY2022, these will be signed at the beginning of the process and their completion allows us to start work on a return. You’ll see engagement letters come out in the coming days.
- Create log-in for IRS and state agencies (MyTaxIL for Illinois residents – see below).
- Upload documents and update profile information in the client portal (go to ledgergeneral.com and select “Share Documents”) including any change of address or change in dependent information. If you are married filing jointly and you would like to switch the person assigned to “taxpayer” and “spouse”, this is a great time to do so!
- Email Christa at firstname.lastname@example.org to let her know when everything has been included and she will advance your return to the input/review stage. If you have special circumstances that require an early deadline (ex. Home refinance), please point this out so we can plan accordingly.
- Sit tight and wait for any questions from Marty.
- Receive draft and approve.
- Receive documents for signature via Hellosign as well as electronic invoice.
- Once your invoice is paid and signature documents are complete, Marty will file your return and client copies will be stored in your client portal for safe keeping.
- Enjoy your spring!
|Note! Documents sent via email or through any file sharing service (i.e. Dropbox, Google Drive) will be accepted but may result in delays. If you need to physically drop off documents at our office, please contact Christa to arrange. If you are new to Ledger General or otherwise have not received client portal log-in information, reach out to Christa for more information.|
The kids are growing up!
Are you the parent of a new wage earner and are questioning if they need to file their own first return? Make sure to let us know if you’re in this position and Marty will look at their earnings to let you know if a separate return is needed. Please make sure to let us know well in advance so that we can get them on our roster of returns.
- Revenue and expense statements – P&L, Balance Sheet, access to online books if we don’t already have them. If you do not have a P&L and Balance Sheet, please include a .csv download of your 2022 transactions from your bank.
- Bank Statements
- Estimated tax payment receipts
- Updates to ownership, if any
- Home office deduction requirements. How to calculate: need to know the square footage of the office/square footage of the entire residence, and expenses tallied for utilities (internet, phone, rent/mortgage) as a percentage will be claimed
- We may also want to login to state agencies for business, especially in CA, so we’ll work with you to get set up with those agencies so we can get access and confirm proper filings.
We’ll be preparing personal returns from the first week of February up until the tax deadline of April 15 with the exception of March 7-15 while we are meeting deadlines for our S-Corp clients. If documents are received after March 31, we cannot guarantee a filing by April 15 so we will automatically file an extension for you to be completed by the extension deadline of 10/15/2023. Please note that an extension of time to file does not include an extension of time to pay. Anyone with an extension that has owed in the past or thinks they will owe this year should plan to make a payment to the IRS and their respective home states by 4/15 to avoid interest and penalties. As always – make sure to scan and upload an letter from the IRS, including payment confirmation for online tax payments, to your client portal!
Links to create tax agency logins:
Request a Letter ID: https://mytax.illinois.gov/_/#0
–Can my spouse and I both have logins to our client portal? Currently, our software can only attach one client login to a portal file, so login information needs to be shared between couples.
–Can I still get a tax planning/review meeting with Marty? Absolutely! A tax consultation meeting can be scheduled with Marty for a separate fee of $175. This does not include tax preparation/filing fees.
–I’d like to refer a friend who needs a new accountant. Is this possible? We’re happy to discuss taxxes with new clients prior to March 1 but will not be taking on new clients for FY2022 after that date.
-Should I include receipts for everyday medical items? Use our spreadsheet above to detail payments. Individual receipts are not needed.
(Use our handy IRS document search tool for your documents)
2023 Tax Brackets
Income Tax Brackets and Rates
The 2023 income ceiling for all listed tax brackets and for all filers, adjusted for inflation are listed below. The Seven federal income tax rates for 2023 are… 10% – 12% – 22% – 24% – 32% – 35% – 37% The marginal income tax rate of 37% will apply to taxpayers with taxable income above $539,900 (single filers), and $693,750 is the target for married couples filing jointly…(SEE Table 1)
All income ranges for each rate have been adjusted for inflation.
Table 1. Tax Brackets and Rates, 2023 (Source: IRS)
Standard Deduction and Personal Exemption
2023 has standard deductions for single filers increasing by $900; $1800 for married couples filing jointly. Personal exemptions for 2023 remains at ZERO (this is due to the personal exemption from the Tax Cuts and Jobs Act 2017)
Table 2. 2023 Standard Deduction and Personal Exemption (Source: IRS)
|Filing Status||Deduction Amount|
|Married Filing Jointly||$27,700|
|Head of Household||$20,800|
2024 Tax Brackets
Income Tax Brackets and Rates
The 2024 Income ceiling for all listed tax brackets and for all filers, adjusted for inflation are listed below. The seven federal income tax rates for 2024 are: 10%, 12%, 22%, 24%, 32%, 35%, and 37% (no changes from 2023). The marginal income tax rate of 37% will only apply to taxpayers with taxable income above $609,350 (single filers), and $731,200 is the target for married couples filing jointly. (SEE Table 1)
Table 1. Tax Brackets and Rates, 2024 (Source: IRS)
Standard Deduction and Personal Exemption
2024 has standard deductions for single filers has increased by $750; $1500 for married couples filing jointly. Seniors over the age of 65 are eligible to claim an additional standard deduction of $1,950 for single filers and $1,550 for joint filers. The personal exemption for 2024 remains at ZERO (this is due to the personal exemption from the Tax Cuts and Jobs Act 2017.)
Table 2. 2024 Standard Deduction and Personal Exemption (Source: IRS)
|Filing Status||Deduction Amount|
|Married Filing Jointly||$29,200|
|Head of Household||
Tax Tools & Financial Calculators
All tools provided by CalcXML and the IRS
Choose your State to check on your Refund
Choose your State to find a Form or Publication
Important Tax Dates for 2023
IRS official tax dates you need to stay on top of your taxes.
2023 E-filing Dates
- Jan 23 – IRS begins accepting and processing e-filed returns and extensions
- April 18 – Tax Day – Last day to e-file returns and extensions
- October 18 – Last day to e-file returns with a 6-month extension
2023 Estimated Tax Payment Dates
- January 17 – Make last 2022 estimated tax payment
- April 18 – First 2023 estimated tax payment due
- June 15 – Second 2023 estimated tax payment due
- September 15 – Third 2023 estimated tax payment due
Tax Document Dates
- January 31, 2023 – Deadline for employers to file Form W-2s with the IRS, unless filed electronically for 2022 forms
- January 31, 2023 – Deadline for reporting payments to contract workers on Form 1099-MISC for 2022
2023 Federal Legal Holidays
- Monday, January 2 – New Year’s Day (observed)
- Monday, January 16 – Martin Luther King Jr.’s Birthday
- Monday, February 20 – President’s Day
- Monday, May 29 – Memorial Day
- Monday, June 19 – Juneteenth National Independence Day
- Tuesday, July 4 – Independence Day
- Monday, September 4 – Labor Day
- Monday, October 9 – Columbus Day
- Friday, November 10 – Veterans’ Day
- Thursday, November 23 – Thanksgiving Day
- Monday, December 25 – Christmas Day
Tax Calculators – Provided by CalcXML
- What is my potential estate tax liability?
- Federal income tax calculator
- Should I adjust my payroll withholdings?
- Will my investment interest be deductible?
- How much self-employment tax will I pay?
- Capital gains (losses) tax estimator
- Compare taxable, tax-deferred, and tax-free investment growth
- How much of my social security benefit may be taxed?
- What are the tax implications of paying interest?
- Should I itemize or take the standard deduction?
- What is my tax-equivalent yield?
- Tax refund estimator
- Tax freedom day
- Lease or buy an automobile?
- Loan vs. 0% dealer financing?
- What would my auto payments be?
- Upgrade to a more fuel efficient vehicle?
- Auto loan: accelerated payoff
- How much vehicle can I afford?
- How much should I be saving for college?
- Can I pay back my student loans?
- Advantages of the Coverdell ESA
- Advantages of a 529 college savings plan
- The value of a college education?
- Payments on a parental (PLUS) loan?
- Live on campus, off campus or at home?
Home & Mortgage
- How much home can I afford?
- Should I refinance my home mortgage (break even)?
- Mortgage calculator
- Comparing mortgage terms (i.e. 15, 20, 30 year)
- Should I pay discount points for A lower interest rate?
- Should I rent or buy a home?
- Should I convert to a bi-weekly payment schedule?
- Compare a ‘no-cost’ versus traditional mortgage
- What are the tax savings generated by my mortgage?
- Which is better: fixed or adjustable-rate mortgage?
- Adjustable rate mortgage calculator
- How do closing costs impact the interest rate?
- Compare an interest-only versus traditional mortgage
Paycheck & Benefits
- How much is my company bonus after taxes?
- How will payroll adjustments affect my take-home pay?
- Convert my salary to an equivalent hourly wage
- Convert my hourly wage to an equivalent salary
- Future value of my employee stock options?
- Exercise my “in-the-money” stock options?
- What may my 401(k) be worth?
- Impact of increasing my 401(k) contribution?
- What may my 457 Plan be worth?
- Impact of increasing my 457 Plan contribution?
- Will retirement impact my living expenses?
- How much will I need for retirement?
- Are my current retirement savings sufficient?
- Social Security retirement income estimator
- How does inflation impact my retirement income needs?
- I’m retired, how long will my savings last?
- When should I begin saving for retirement?
- Convert discretionary expenses to savings?
- How much retirement income may my 401(k) provide?
- Compare a Roth 401(k) to a Traditional 401(K)
- Does inflation impact my standard of living?
- How much am I spending?
- How much do I need for emergencies?
- Pay down debt or invest more?
- How long will my money last?
- Should my spouse work?
- What is my current net worth?
- What is my projected net worth?
- What is my current cash flow?
- What is my projected cash flow?
- Value of reducing or foregoing expenses
- Historical inflation – compare purchasing power
- How long will it take to pay off my credit card?
- How long until my loan is paid off?
- What are my loan payments?
- What is the balance owing on my loan?
- Consolidate my personal debt?
- Re-structuring debts for accelerated payoff
- Cash up front or payments over time?
- Impact of making extra debt payments?
- Pay off debts or invest the money?
- Estimate my credit score
- How much life insurance do I need?
- What is my life expectancy?
- What are my needs for burial and final expenses?
- How much disability income insurance do I need?
- What are the chances of becoming disabled?
- What are my long-term care insurance needs?
- How much will I earn in my lifetime?
- What are the tax advantages of an annuity?
- How long will my current life insurance proceeds last?
- What is the future value of an annuity?
- Which is better, comprehensive plan or high-deductible plan with HSA?
- Compare a taxable investment to a tax-deferred investment
- Evaluate my company pension payout options
- How much can I contribute to an IRA?
- Retirement income from my IRA provider?
- Convert to a Roth IRA?
- Qualified plan is worth what retirement?
- Current year required minimum distribution?
- Projected required minimum distributions?
- Lump sum distribution options?
- Maximize my employer 401(k) match?
- Impact of borrowing from my 401(k) plan?
- Impact of early withdrawal from my 401(k)?
- I’m self-employed, how much can I contribute to a retirement plan?
- Net Unrealized Appreciation (NUA) vs. IRA Rollover?
- Becoming a millionaire
- Income generated by a savings plan
- How long will it take to double my money?
- How long until my savings reach my goal?
- Save now vs. save later
- How much should I save to reach my goal?
- What will my current savings grow to?
- Calculate rate of return
- How do taxes and inflation impact my return?
- What is my effective annual yield?