Business Accounting & Tax Preparation 1585 W Wetmore Road, Tucson, AZ 85705 Mailing Address: P O Box 35743, Tucson, AZ 85740 Phone: 520-292-9773 Fax: 520-292-9878
Accounting By Design, Inc.
What’s New for 2023 Tax Year
Welcome to a new tax year and the many changes that have gone into effect. This page discusses the ones that will impact you as individuals the most. Federal Changes ALIMONY - this is no longer deductible by the payer spouse nor is it includible in income by the recipient spouse. This rule only applies for divorce or separation instruments executed AFTER December 31, 2018 or modified after December 31, 2018 Medical Expenses - Qualified medical expenses are deductible to the extent that they exceed 7.5% on Adjusted Gross Income Penalty for not having health insurance has been reduced to $ 0.00 Mileage Rates for 2023 (per mile) - Business 65.5 cents Charitable 14 cents Medical/Military Moving 22 cents Required Minimum Distribution (RMD) the starting date for making RMD’s has been raised to age 72 HSA’s and Archer MSA’s - All medicines and drugs can be reimbursed tax free without a prescription or recommendation by a physician Maximum age for Traditional IRA Contributions has been repealed. Therefore taxpayers of ANY age can contribute Standard deduction for Married Filing Joint raised to $27,700; Single/Married Filing Separately $13,850 and Head of Household $20,800
Arizona Changes Standard deduction has been increased to $27,700 for Married Filing Joint, $13,850 for Single and $20,800 for Head of Household Prop 208 passed by voters requires individuls with taxable income of $250,000 or More (single/Married Filing Separately) and more than $500,00 (Married Filing Joint and Head of Household) to remit an additional tax surcharge. 529 College Savings Plans (including 529A (ABLE) - The taxpayer can deduct up to a toal of $2,000 per beneficiary ($4,000 Married Filing Joint) ARIZONA HAS A FLAT TAX RATE IN 2023 OF 2.5% Many previous laws remain the same, including last year’s tax credits for qualifying charitable organization, qualifying foster care organizations, certified school tuition organizations and public school tax credits NEW SECURE E-MAIL PROCESS: Due to today’s issues with e-mail security we have a new secure e-mail that allows you to send us secured e-mail instead of using regular e-mail. This allows you to send e-mails to us that contain sensitive information (ie social’s, bank account numbers, etc.). It is easy to use: simply type in your web browser (not your e-mail server) for Linda or use for Kinna.