2023 Tax Updates and Documents

Shurson Group is excited to be able to continue to work with and advise you regarding your income tax! Linked below is the annual Individual Income Tax Questionnaire highlighting important items we will need this tax season.

Please take a moment to go through the list to make sure you have collected all of the required documents. We require you to download and complete the Questionnaire and send back to us before we can begin your return.

Also included is a Client Engagement Letter. Please download and review, sign, and return to us when you submit your tax documents for the 2023 season. We require all parties to sign the Letter before we can begin your return.

You will also get all of these same documents as both a physical letter in the mail and digitally in your email.
To return these documents to us, please choose one of the following options:

  • Mail to our office
  • Bring in for your appointment (if you made one – not required)
  • Drop off at our office
  • Upload via your secure portal (most common)

    Note: To separately filed Business returns (S-Corps and Partnerships) and Trusts, we will send you your Engagement Letters directly.

A Few Highlights for Tax Year 2023

Energy Efficient Home Improvement Credit

Beginning January 1, 2023, the credit equals 30% of certain qualified expenses, including:

  • Qualified energy efficiency improvements installed during the year
  • Residential energy property expenses
  • Home energy audits

The maximum credit you can claim each year is:

  • $1,200 for energy property costs and certain energy-efficient home improvements, with limits on doors ($250 per door and $500 total), windows ($600), and home energy audits ($150)
  • $2,000 per year for qualified heat pumps, biomass stoves, or biomass boilers

Required Minimum Distribution Changes

Beginning in 2023, the SECURE 2.0 Act raised the age that you must begin taking RMDs to age 73. RMD rules say that you must take your first distribution April 1 of the year AFTER you turn age 73. That means, if you reached age 72 in 2023, the required beginning date for your first RMD is April 1, 2025. If you reached age 73 in 2023, you were 72 in 2022 and subject to the original age 72 RMD rule.

Electric Vehicle Credits

You can claim a credit for up to $7,500 for a qualified new EV purchase. In 2023, you can now claim a $4,000 credit for purchasing a qualified used EV. Both these credits are subject to income limitations.

Minnesota K–12 Education Credit

The K–12 Education Credit has increased eligibility for taxpayers, allowing you to claim the credit if your adjusted gross income falls below $75,000 (previously $33,500). In addition, the credit is increased from $1,000 to $1,500.

Minnesota Child Tax Credit

For taxpayers with incomes less than $29,500 ($35,000 for Married Filing Jointly), a new refundable child tax credit can be claimed in the amount of $1,750 per qualifying child.

Minnesota Social Security Subtraction

Beginning in tax year 2023, Social Security will now have a 100% subtraction from Minnesota Taxable Income if their adjusted gross income is below a particular threshold.

Qualified Benefits Subtraction

Similar to the Social Security Benefit subtraction, certain public pension recipients and survivors will now qualify to have a portion subtracted from Minnesota Taxable Income so long as they are not drawing on Social Security as well. You will need to contact your payer if this applies to you. The following state plans may qualify for the subtraction:

  • State Patrol
  • Legacy Legislators Retirement Fund
  • Certain legacy members: PERA General Plan
  • Legacy members: Minneapolis Employee Retirement Fund
  • PERA Police & Fire Plan
  • Legacy members: TRA
  • Certain legacy members: St. Paul Teachers Retirement Fund
  • Certain members: PERA Correctional Employees Retirement Fund
  • Ch. 353, 353E, 354, 354A

New Filing Requirement for Owners of LLCs

Effective January 1, 2024, “reporting companies” (such as limited liability companies and partnerships) will need to file with the Financial Crimes Enforcement Network of the US Department of the Treasury (FinCEN) reports containing personal information about the company’s beneficial owners.

As with every year, the standard deduction, income thresholds, and retirement contribution limits all been adjusted up for inflation.

To protect your data when sending your information to us, we offer the following options:

  1. Secure Client Portal: you will be able to upload documents to a secure site. If you wish to use this, please contact our office via phone (507.206.0677) or email ([email protected]) and we will set up an account for you. There is also an option for a Guest Exchange where you don’t need to set up an account ahead of time. The link is also in the top toolbar of the website menu.
  2. Drop off, mail, or fax your paperwork to our office. Please bring the completed Questionnaire and signed Engagement Letter when you drop off your documents.
  3. We do not encourage emailing your tax documents to us. If you prefer an electronic method, we highly suggest you utilize our secure client portal.

Our extended office hours begin January 22, 2024:

Monday–Thursday: 8 AM–6 PM
Friday: 8 AM–5 PM
Saturday: 9 AM–4 PM

Please let us know if you have any questions. We look forward to hearing from you soon!

Your Shurson Group Team