January 2023 E-Newsletter

JANUARY 2023 E-NEWSLETTER

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January Featured News

Taxes in Retirement

With Social Security benefit payments increasing nearly 9% this year, you may need to rethink your retirement tax planning.

Understand Your Cash Flow Statement

Managing cash is vital for running a successful business, and that is why regularly reviewing your company's cash flow statement is so important.

Updating Your W-4

The start of the new year is the perfect time to review your tax withholding and make changes if necessary.

Improving Online Security For Your Business

Taking advantage of the latest technology can help ensure your company's infrastructure is safe and secure.

Important Changes to 1099 Forms for 2023

This year, several significant legal developments, including the passage of the Inflation Reduction Act, have meant that taxpayers will see substantial changes to their taxes when they begin to file in 2023.

JANUARY 2023 Q & A

Q: Is student loan debt forgiveness taxable?

A: Thanks to the American Rescue Plan Act enacted in 2021, student loan debt forgiveness isn't considered taxable income on your federal tax return. This exclusion from income is valid for any student loans forgiven in 2021 through 2025. Starting in 2026, the old rules will apply, making student debt forgiveness taxable.

But your state may have different tax rules for student loan forgiveness. Currently, a handful of states consider it taxable income. So, if you have questions about your situation, please feel free to speak with your tax professional.

SHORT BITS

Inheriting a House

Inherited real estate generally does not trigger these taxes: estate, gift, capital gains or income. That’s because, under tax law, the starting value of the house is generally the property’s fair market value at the time of the homeowner’s death. This is known as the “step-up in basis” and means that you may have a capital gain or loss if you sell the property after you inherit it.

However, if you choose to use the home as your primary residence for two of the five years preceding the sale of the home, you’ll probably qualify for the primary residence tax exclusion of up to $250,000 if single ($500,000 if married filing jointly) in capital gains.

Be sure to change the ownership records with your local government, which requires providing copies of the decedent’s will and death certificate and drafting and filing a new deed.

Social Security Payments Increase

Social Security recipients will receive an 8.7% increase in their 2023 payments.

Source: https://www.ssa.gov/news/press/factsheets/colafacts2023.pdf

Office Information

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Address: 415 Crossways Park Dr. Ste. C., Woodbury, NY 11797

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