December 2023 Individual Due Dates
December 1 - Time for Year-End Tax Planning
December is the month to take final actions that can affect your tax result for 2023. Taxpayers with substantial increases or decreases in income, changes in marital status or dependent status, and those who sold property during 2023 should call your BATS Xpress team for a tax planning consultation appointment.
December 11 - Report Tips to Employer
If you are an employee who works for tips and received more than $20 in tips during November, you are required to report them to your employer on IRS Form 4070 no later than December 11. Your employer is required to withhold FICA taxes and income tax withholding for these tips from your regular wages. If your regular wages are insufficient to cover the FICA and tax withholding, the employer will report the amount of the uncollected withholding in box 12 of your W-2 for the year. You will be required to pay the uncollected withholding when your return for the year is filed.
December 31 - Last Day to Make Mandatory IRA Withdrawals
Last day to withdraw funds from a Traditional IRA Account and avoid a penalty if you were born before January 1, 1952. You may delay your first distribution to April 1, 2024 if your birth date is during the period January 1, 1951 through December 31, 1951. If you are required to take a distribution in 2023, and the institution holding your IRA will not be open on December 31, you will need to arrange for withdrawal before that date.
December 31 - Last Day to Pay Deductible Expenses for 2023
Last day to pay deductible expenses for the 2023 return (doesn’t apply to IRA, SEP or Keogh contributions, all of which can be made after December 31, 2023).
December 31 - Caution! Last Day of the Year
If your intended financial transactions can't be executed on December 31st or require more than a day to complete, it's advisable to initiate them well before that date. Since December 31st falls on a Sunday this year, and many financial institutions might also be closed on the preceding Friday, the 29th, and Saturday, the 30th, planning ahead is crucial.