I am a licensed public accountant however my agency does not put together tax returns. Nonetheless, I am additionally a enterprise proprietor. This implies, like my finest shoppers, I pay shut consideration to my taxes. Why? As a result of for a enterprise proprietor, taxes are normally considered one of our largest bills. If you happen to’re operating a enterprise, these are 10 federal tax numbers which might be essential for all of us in 2023.

$160,200

That is the utmost quantity of wages that may be taxed for social safety (FICA) advantages at 6.2% (the 1.45% Medicare tax has no restrict). Any wages paid over this quantity will not be topic to the FICA tax — worker or employer. That is essential as a result of in case you increase an worker’s compensation above this quantity, they’re receiving an added tax profit which must be a part of your wage concerns this yr.

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$6,500

That is the quantity you possibly can contribute to a person Roth IRA account. Roth IRAs typically get ignored by my shoppers however they are a improbable method to put after-tax cash away and watch it develop tax-free with no penalties or further taxes on withdrawal. As a result of the inventory market is down, I’ve a variety of older shoppers taking distributions from their 401(okay)s, paying the tax on a decrease capital achieve, after which transitioning these quantities to a Roth the place the quantities are by no means taxed once more. Everybody must be placing cash right into a Roth IRA.

$7,500

That is an added “catch-up” contribution that may be made to your 401(okay) account in case you’re over the age of fifty — which implies that greater than half of enterprise house owners within the U.S. are most likely eligible. There’s additionally a $1,000 catch-up for particular person IRAs for folks on this age group. Because of the not too long ago handed Safe 2.0, the 401(okay) catch-up quantity goes to rise to as a lot as $10,000 yearly for these between the ages of 60 and 63 beginning in 2025 and can then be adjusted for inflation every year.

$66,000

That is the quantity that may be contributed to a 401(okay) plan this yr which incorporates each employer and worker contributions and doesn’t embrace any “catch-up” contributions. This quantity is proscribed to your earnings and discrimination exams (see under).

$150,000

That is the quantity of compensation that defines a “extremely compensated worker.” That is essential as a result of the variety of folks you could have in your 401(okay) retirement plan that earns over this quantity will determine into your plan’s year-end discrimination testing and which will restrict the quantity you — they usually — can save. The takeaway: The extra staff —significantly non-highly compensated staff — that contribute to your 401(okay) plan, the extra you possibly can contribute.

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$0.655

That is the IRS-reimbursable mileage price for 2023 and it modifications yearly based mostly on the fluctuating prices of working a automobile. That is essential as a result of you possibly can reimburse your worker for any miles traveled above the commute to your workplace (for instance to a buyer) and you will get a tax deduction — and the quantity will not be taxable to them. That is doubtlessly an incredible additional benefit to offer to your workers, significantly in these occasions of excessive gasoline prices.

$300

That is the quantity you possibly can pay your staff every month to reimburse for his or her commuting bills. You may get a deduction they usually will not be taxed. If an worker drives to work, you may as well pay them $300 to reimburse for his or her parking bills with the identical tax remedy. It is one other profit to contemplate and might be a useful enticement to get your folks again into the workplace extra typically.

$1,160,000

That is the utmost Part 179 deduction you possibly can take this yr for the acquisition of capital property. This is applicable to each new and used property like capital tools, equipment, furnishings and most laptop software program. There are “bonus” depreciation deductions that what you are promoting can take along with the Part 179 quantities. You’ll be able to even finance these purchases and get these deductions — simply ensure that they’re “in service” by year-end.

$12,920,000

That is the person federal property lifetime tax exemption which implies that a married couple can go away greater than $25 million of their property upon their deaths tax-free to the beneficiaries. After that, most transfers of property shall be taxed at 40%. This exemption will get decreased to $7,000,000 individually in 2026.

$17,000

That is the quantity you possibly can present this yr and the recipient will not be taxed. That is along with the lifetime addition above and applies to anybody, not simply members of the family.

You already know what’s coming subsequent, proper? It is the standard caveat the place I write that your state of affairs could also be distinctive and you must at all times seek the advice of your tax skilled earlier than making any choices based mostly on the above numbers.