February 2023
Financial Planning

By: Javier Jimenez

It’s tax time!  As eventful as 2022 was, from the war in Ukraine to Lionel Messi winning his first World Cup, we can’t forget to pay Uncle Sam!  Below is some helpful information that you can use to assist you in 2023. 

2023 Tax Filing Deadlines:

Personal Tax Return                                                 April 18, 2023

Personal Tax Return Extension                               October 16, 2023

Estimated Tax Payments                                        April 18, 2023, June 15, 2023,

More Information                                                September 15, 2023, January 16, 2024

Is it a Credit or a Deduction?

If you are confused by the difference between the two, you are not alone.  A tax deduction reduces your taxable income which, in turn, lowers the amount of taxes you may pay according to your tax bracket.  So, if you are in the 20% tax bracket, a $100 deduction saves you $20.  Contributions to an IRA or HSA may be tax deductible and help to lower your taxable income for 2022. Contributions must be completed by April 18th or by the time you file your taxes. Reach out to us to see if there is anything else you can do to help lower your 2022 taxable income.

In contrast, a tax credit reduces your tax owed dollar for dollar; however, in Arizona it also allows you to direct where your tax dollars go.  Every state has their own list of credits available, and we have links to those offered in Arizona and Utah below.

At Copperwynd, we want to ensure you know who you are donating to and whether the donation is tax refundable or not. It’s a good practice to always log on to CharityNavigator.org prior to donating to evaluate a charity if you are not familiar with them.

As always, if you need assistance, we are here to provide you with as many answers as we can.  While we do not prepare tax returns, we are well versed in the information you need to complete your returns and, if more help is needed, we have a number of outstanding tax professionals we can refer you to!

•  Arizona Tax Credit Summary

•  Utah Tax Credit Summary
   

Always make sure to keep all related documents, including credit forms, with your records. You may have to provide this information later to verify a credit claimed on your return. If you have any specific questions about your return or these credits, contact your CPA or tax preparer.

We’re always here to help you navigate a tax-related topic.  Please get in touch with any questions. 

If you have questions, please contact us.

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To download the February 2023 Newsletter: CLICK HERE