Tax Day 2023 is Tuesday, April 18, 2023 for most individual taxpayers. Some taxpayers in certain natural disaster areas are allotted more time to file depending on the disaster.
Tax Return Extension
An extension of time to file a Federal individual return is required by Tax Day. Filing an extension provides for an automatic six-month tax extension to October 15, 2023. The extension is an extension to file and does not extend the time to pay your tax. Taxes unpaid on April 18, 2023 are considered late and will incur interest and penalties until the time you file your 2022 return.
Additional extensions may be required for your resident state. Filing requirements and due date vary state to state.
Tax-Deductible IRA Contributions
For 2022, the IRA contribution limit is $6,000 for taxpayers. For taxpayers taxpayers 50 and older, there is an additional catchup contribution of $1,000. Contributions for the 2022 tax year can be made until April 18, 2023.
You may be able to get a tax deduction for your IRA contribution. If you are covered by an employer’s qualified retirement plan (such as a 401(k) or 403(b)), your deduction may be limited if you income is too high.
Withdrawals of IRA Contributions
For those taxpayers that do not qualify to make contributions to a Roth IRA or for taxpayers that receive no tax benefit from a Traditional IRA contribution, they can withdraw their Traditional or Roth Contributions up until April 18, 2023 for tax year 2022.
Health Savings Account Contributions
For 2022, the Health Savings Account contributions are limited to $3,650 for a single-only plans or $7,300 for a family plan. For individuals who are 55 and older, there is an additional catchup contribution of $1,000. Contributions for the 2022 tax year can be made until April 18, 2023.
If you have questions about how this topic will impact you, Team LittleOwl CPA is here to help. Schedule a discovery call today!
About Tabitha Regan
Tabitha Regan is the Founder and CEO of LittleOwl CPA. She is a Certified Public Accountant, Certified Financial Planner™ and Personal Financial Specialist. In her 16+ year career span, she has developed an expertise in the specific needs of small businesses and busy professionals with accounting, tax and advisory services.
