Everything You Need to Know About the 2023 Tax Season
April 4, 2023
Tax season is upon us once again, and it's time to start preparing for the 2023 tax season. This year is expected to be another hectic one with many changes taxpayers need to know about. The standard deduction for 2023 increases1 to $13,850 for single filers and $27,700 for married couples filing jointly. To simplify things, we have compiled a comprehensive guide on everything you need to know for this year's tax filing.
There are key dates to remember; begin accepting and processing 2023 tax returns on January 23, 2023. The deadline for filing your tax return is April 18, 20232. If you need more time to file your taxes, you can request an extension until October 16, 2023.
It's important to note that while the federal government sets these deadlines, state governments may have different deadlines. You should check with your state's tax department to confirm their specific deadlines. It's crucial to file your taxes as soon as possible3 after you have all the necessary documents especially if there are changes in your situation from previous years.
What You Need to File
- W-2 forms from your employer(s)
- 1099 forms, which are typically issued by banks, unemployment compensation, dividends, distributions from a pension, annuity, or retirement plan
- Form 1099-K, 1099-MISC, W-2, or other income statements4 are required for those who received payment from anyone besides their employer.
It is important to remember that if you received any advance payments of the Child Tax Credit5 or Economic Impact Payments, you'd need the necessary documentation when filing your taxes. The IRS sent out Letter 6419 in late 2022 and into early 2023 to those who received an advance Child Tax Credit in 2022. When filing your tax return, you'll need this document to compare the advanced child tax credit you received to the amount you were eligible for.
How to check your filing status and file your taxes
The I.R.S. offers anyone under $73,000 a year the option to file their federal taxes for free through the Free File Fillable Form6. Taxpayers can choose between e-filing7 for a faster refund or filing by mail8. If you are unsure of your filing requirements or status, you can take a brief survey9 to identify the filing method that will result in the lowest taxes based on your situation.
Has anything changed this year?
Yes, with the surging gas prices, the I.R.S.10 made a rare change in the middle of the year. They have increased the amount taxpayers can deduct for gas mileage, benefiting taxpayers who take the deduction for business purposes and medical expenses.
The 2023 tax season will bring some changes to the way we file taxes. Taxpayers can expect higher standard deductions and new limits on itemized deductions. It’s important to stay informed about these changes and seek professional advice to ensure a stress-free tax season ahead of April 2023.
This information is for informational purposes only, is intended to provide general guidance, and does not constitute legal, tax, or financial advice. Each person’s circumstances are different and may not apply to the specific information provided. You should seek the advice of a financial professional, tax consultant, and/or legal counsel to discuss your specific needs before making any financial or other commitments regarding the matters related to your condition.
1 Retrieved from: https://www.ramseysolutions.com/taxes/tax-season-what-you-need-to-know#:~:text=Standard%20deduction%20increase%3A%20The%20standard,will%20also%20increase%20in%202023.
3 Retrieved from: https://www.irs.gov/individuals/steps-to-take-now-to-get-a-jump-on-next-years-taxes
4 Retrieved from: https://www.irs.gov/forms-instructions
5 Retrieved from: https://www.irs.gov/credits-deductions/individuals/child-tax-credit
6 Retrieved from: https://www.irs.gov/filing/free-file-do-your-federal-taxes-for-free
7 Retrieved from: https://www.irs.gov/filing/e-file-options
8 Retrieved from: https://www.irs.gov/filing/individuals/how-to-file
9 Retrieved from: https://www.irs.gov/help/ita/what-is-my-filing-status
10 Retrieved from: https://www.irs.gov/newsroom/irs-increases-mileage-rate-for-remainder-of-2022