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What to Expect in 2023 in Small Business Taxes

As a small business owner, tax season can be a stressful time. With the ever-changing regulations and tax laws, it’s easy to feel overwhelmed and unsure about how to navigate the tax landscape. However, with the right guidance and support, tax season doesn’t have to be a daunting task. At Hylen CPA, we’re here to help you every step of the way. Hylen can handle it for you so that you can rest assured that your tax needs are in good hands.


2023 Tax Year: What to Expect

With the new year comes new changes, and the 2023 tax year is no exception. Here are some of the things that small business owners can expect for the upcoming tax season:


Changes to Tax Rates: The IRS adjusts tax rates annually to account for inflation. In 2023, the tax brackets for individuals and businesses will see slight increases.


Standard Deduction Increases: For individuals, the standard deduction will increase to $13,100 for single filers and $27,700 for married couples filing jointly. For married couples, the standard deduction will increase to $25,800.


Modified Credit for Pension Plan Startup Costs: The SECURE Act increases the Section 45E credit for all or a portion of employer contributions to small employer pensions (for the first five employer tax years) starting in 2023. The credit for employer contributions is capped at $1,000 per employee.


Health Savings Account (HSA) Contribution Limits: The contribution limits for HSAs will increase slightly in 2023. For individuals, the contribution limit will be $3,850, and for families, it will be $7,750.


Net Operating Rules: The rules around how to claim a net operating loss are changing this year. Now you cannot offset more than 80% of your taxable income.


Cryptocurrency Taxation: With the rise of cryptocurrency, the IRS has been cracking down on individuals and businesses that fail to report their crypto transactions. In 2023, businesses that accept cryptocurrencies as payment will need to report those transactions on their tax returns.


Changes to Retirement Plan Limits: Contribution limits for 401(k) plans and other retirement plans will see modest increases in 2023.


How Hylen CPA Can Help


At Hylen CPA, we understand that tax laws and regulations can be complicated and difficult to navigate. That’s why we offer a range of services to help small business owners with their tax needs. Our team of experts stays up-to-date with the latest changes and regulations, so you don’t have to. Here are just a few of the services we offer:


Tax Planning: Our team can help you create a tax plan that minimizes your tax liability while maximizing your deductions.


Bookkeeping: We offer bookkeeping services that help you keep track of your finances throughout the year, so you’re prepared when tax season comes around.


Tax Preparation: We can prepare and file your tax returns, ensuring that everything is accurate and compliant with the latest regulations.


Audit Support: If you’re facing an audit, we can help you navigate the process and ensure that everything is in order.


At Hylen CPA, we’re committed to providing our clients with the highest level of service and expertise. With our help, you can feel confident that your tax needs are in good hands. So, if you’re looking for a trusted partner for the 2023 tax year, look no further than Hylen CPA.

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