Welcome to the Upcoming Tax Season

NEW TAX ISSUES

We are happy to announce that the 2023 tax filing season (2022 Tax Year) will begin soon and Oak Tree Retirement Concepts will now be the E-file provider for all tax returns.

It is never too early to start your review of possible issues when you file.

Personal Identity Numbers: www.id.me/individuals/government

If you have acquired a PERSONAL PIN NUMBER with the IRS for past filings, please remember you must go out EVERY YEAR and obtain this before we can file your tax returns. This should be available after January 9, 2023 We MUST HAVE THIS in order for your efile to go through.

Investment Accounts 1099 B, DIV, INT and R:

Please remember to make sure you have collected all of your required documents. If you have a brokerage account please make sure you have obtained the 1099 statement for the account along with any necessary 1099s for retirement distributions.

HSA Accounts: 1099 SA and 5498 SA

Please remember if you have an HSA withholding at your place of employment there should be a Code W in box 12 of your W2. If so you should also be on the lookout for a 1099 SA and a 5498 HSA which represents the distributions from the HSA (1099 SA) and the value statement of the account (5498 HSA).

Crypto Currency: 1099 B

This may not effect a lot of people how since Crypto Currency and third party payors are a big issue this year, I just want to give you some up and up information.

If you have a crypto currency account you should receive a 1099 statement for your investment. This is to be handled just like a capital gain (stocks) adjustment. As such you could be taxed a higher levels depending on the amounts of losses and gains. This will more than likely be reported as short term gains and there are no WASH amounts allowed.

So if you have questions on this please contact me and I will review for you.

Child Tax Credit:

The Child Tax Credit is now limited to only $2000 per child regardless of age and only up to age 16 as of December 31, 2022. If you have a child which turned 17 during 2022 they will be considered as an "Other Dependent" with a $500.00 credit available. Also if your child worked within the year of 2022 they may be required to file separately. HOWEVER, you can still claim the child as long as they do not claim themselves on their personal return. The rule of thumb here is the amount of earnings made vs. the amount of support from the parent and whether or not the child resides within your home. As for parents who have shared custody of the child you should look into reviewing and updating your 8832 forms for the IRS in order to make sure that your are filing and claiming .

THE NEW EV CREDIT

By now everyone has heard about the new Electric Vehicle Credit that is being offered There are however certain issues you must be aware of on this. THIS IS NOT A REFUNDABLE CREDIT. Meaning there is no cash back on your return. It does however decrease the total tax owed on your return which could mean that you will receive a higher refund if you withheld correctly. Case in point if your taxes owed were $8000 and the credit is worth $7500 you would only owe $500 in annual taxes. If you withheld $9000.00 in Federal withholding you would receive 8500.00 in refund. So if you purchased an EV during 2022 and the vehicle is less that two year old you might be able to take advantage of this credit.