Happy Spring!
Tax season news in abundance...
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Thank you!
Our garden is bursting with DONEs received by our March 15th data deadline, and we are busy checking in your tax data in the order it was received.
Our team is acknowledging receipt of your data after a quick check, at which point they may request additional information or clarification. To hold your place in the queue, please watch your email and respond promptly and fully to any data requests.
Due to the high volumes of tax season, we are unable to acknowledge each time a client notifies us they are DONE submitting their data, but if you sent an email and it didn't bounce back, rest assured it was received. If you uploaded a "DONE" file to each of your completed SmartVaults, you can see the file online and so can we.
It will take us a week or two to fully check in the data received just last week, and those tax returns will likely be prepared in April. If you not heard anything from us by April 1st, feel free to reach out. Until then, we appreciate your patience.
If it's not in our hands by now, there is no rush to get us your tax data in April.
~ OUR NEXT DATA DEADLINE IS JUNE 15th! ~
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Extensions will be filed;
Payment is up to you
The Business Guides handles filing federal and state extensions for all of our clients' tax returns that are not filed by the spring deadlines. You don't need to request that we extend your returns; we do it as a matter of course. If you need proof of extension for financing purposes, that is available upon request.
Although an extension gives you six more months to file your tax return, there is no extension of time for paying the income tax you owe. In other words, your 2022 federal and state taxes are still due on the return due date of April 18, 2023. Interest and penalties are proportionate to the amount owed, so owing a little is not a big deal. But owing a lot could be costly. The current IRS interest rate for underpayments is 7% per year, compounded daily -- the highest we've seen in years.
How do you know if you should make a payment by April 18th? If you did year-end tax planning with The Business Guides, you should know the answer to this question. If you regularly receive a tax refund and your tax situation has not changed dramatically, you probably don't need to make an additional payment.
If you think you will owe taxes, click here for our general advice.
And if underpaying taxes stresses you out, let's do year-end tax planning! If interested, email Shelly to get on the outreach list.
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NEWS YOU CAN USE:
Hospitality grant now open for applications
The Washington State Department of Commerce is offering a new grant for businesses in the hospitality and lodging industry that suffered business losses due to the pandemic. The application portal opened last week at wahospitalitygrants.com. An informational webinar recording and upcoming webinars can be found here.
Eligible businesses include:
- Restaurants
- Food stands, food trucks, food carts
- Caterers
- Bars, saloons, lounges, taverns
- Snack and nonalcoholic beverage bars
- Bakeries
- Brewpubs, tasting rooms, taprooms
- Breweries or microbreweries
- Wineries and distilleries
- Inns & hotels
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2 new Washington State tax programs
1) Working Families Tax Credit: If you receive the Earned Income Credit (EIC) on your federal tax return, you are likely eligible for this new state payment, designed to bolster lower-income working families. Once you have your filed tax return in hand, an easy online application can be completed now through Dec. 31, 2023. We cannot apply for this state credit on your behalf, but we will alert you that you are eligible when we deliver your tax return for review.
To qualify, you must be at least 25 and under 65 years of age OR have a qualifying child on your return in 2022. The credit amount ranges from $50 to $1,200 depending on the number of qualifying children and your income. See the income limits and learn more.
2) Capital Gains Tax on non-real estate investment gains over $250,000 per household: We do not expect this new tax to apply to many, if any, of our clients, but since we may not know until we prepare your tax return, please read this carefully and contact us if you feel it may apply to you. The tax on 2022 gains is DUE to the State of Washington on April 18, 2023, and there are steep late-payment penalties. If your return is extended, you'll want to pay an estimate of this tax by April 18th.
If you and/or your spouse sold stocks, bonds, cryptocurrency, or a business interest outside of a tax-sheltered (aka retirement) account in 2022 and the long-term capital gain was MORE THAN $250,000, a 7% tax may apply to the gain over that amount.
The tax does not apply to capital gains on any real estate sales, including your primary home or investment properties. The tax does not apply to gain from the sale of a family-owned small business. There are other exemptions -- read more about it. This new tax is being challenged, but until the state supreme court rules, it is still in effect. Tax proceeds will fund education in our state.
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Community events we're proud to sponsor
The Business Guides thrives in a thriving community. That's why we support these upcoming events, and encourage you to turn out and join the fun!
2023 Jefferson County Community Leadership Awards
Saturday, March 25th, 4:30 - 6:00 pm
Held at the newly refurbished American Legion Hall with food by Hills and Valley Catering, live music, and adventurer Leif Whittaker as the keynote speaker. Presented by the Chamber of Jefferson County. Get tickets.
Congratulations to all the award finalists!
- Business Leader of the Year: Denise Winter, Pete & Cathy Langley, Kevin Streett
- Citizen of the Year: Sarah Grossman, Sarah Spaeth, Kelli Parcher
- Rising Entrepreneur: Malloree Weinheimer, Jake Ramsey, Jody Locklear
- Young Professional of the Year: Blaise Sullivan, Jacob Davidson, Joshua Cunningham
- Future Business Leader (High School Senior): Ashton Meyer-Bibbens, Adeline Gellert-DePalma, Andrew Stevenson
2023 Port Townsend Farmers Market Season Opening
Ribbon Cutting & Goat Parade
Saturday, April 1st, 9:00 am - 2:00 pm
 Celebrate locally grown goodness and the season opening of our beloved uptown farmers market ~ 70+ farm, artisan food and arts businesses, friends, and neighbors. See schedule.
Did you know? Our very own accountant and QuickBooks expert Lucianne volunteered for several years as the treasurer of the Farmers Market nonprofit. She is an organic veggie lover, and so are we all!
~ The Business Guides team
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