Are you ready for tax season? Tax season can be a dreaded time for many, but if you know what you are doing when it comes to filing, you will be better off and less stressed. That is why we are here to go through the basics of tax filing with you.
Learn more about the dates of tax season 2023, any changes you should be aware of before you file, and what you will need to file or request an extension. Lastly, our tax experts can provide you with the right support for all tax preparation needs for this upcoming tax season.
When Does Tax Season Begin?
The dates are the most important thing to note, so you know when to get it all done – plus, procrastinating until the last minute will only delay your refund. The IRS will definitely come after you if you don’t file at all, so that is not an option. Tax season begins at the end of January 2023 and the last day to file is April 18, 2023. Employers have until the end of January 2023 to send out the necessary forms (W-2, 1099, etc.) that you need to file. So, while you can theoretically start filing as early as January 1st , it is best to wait. Especially since the IRS won’t look at any filings until the beginning of February. Collect your documents, and then you can file your tax return when you have them all in hand.
What are Some Tax Changes to be Aware of for 2023?
Tax season over the last few years has looked different due to the lingering impacts of the COVID-19 pandemic (the biggest difference being automatic date extensions to file into July instead of April). As of right now, there are no implications to the 2023 tax season, but there are some changes you should be aware of before filing your taxes.
Tax filing changes are often complicated and situation-specific, but here are some general changes to be aware of:
- Reporting rules for Form 1099–K have changed – this impacts self-employed individuals or anyone making an income that is not taxed upfront.
- Standard deduction amounts increase – to account for inflation.
- Earned Income Tax credit also increases from $6,935 to $7,430 for qualifying taxpayers with three or more qualifying children.
- Gift exclusions increase by $1000 ($16000 to $17000).
- Tax brackets have changed around, causing a change in taxable percentage rates based on filing status (known as Marginal Rates).
This list, of course, does not include every single change but is an overall gist for items that affect large numbers of taxpayers at the same time. Where your household falls within the changes depends on your filing status and annual income. Therefore, you can figure all this information out, and you need to have the necessary documents for filing.
What Documents are Necessary for Filing Tax Returns?
In order to file your tax return, you need all forms that report your income and taxes paid (W-2, 1099, receipts, etc.). Additionally, any deductions you intend to claim (charity donations, for example), and a copy of last year’s return for comparison. You must file and organize tax returns year after year to make the process simpler for yourself. This is a great way to know what has changed about your financial situation versus the overall tax changes set by the IRS.
You will also have to include information from previous returns in your current return, so this tip is not just about being organized.
Tax Deadline – When Should Someone File for an Extension?
Although the final deadline is April18th, taxpayers can file for an extension. Form 4868 is what you will need to file for an extension. You can file for an extension at any time during tax season for any reason, and it will be granted (as long as the form is submitted correctly). An extension moves the tax deadline from April 18th to October 17th, 2023. However, if you owe taxes to the federal government, you still have to pay those by April 18th , even with an extension. Our tax professional can help you manage this situation so you don’t have any issues with your tax return.
Partnering with a Professional Tax Advisor is Important
Partnering with a trusted accounting service is important and can ensure that you are receiving proper guidance for all tax related issues. Filing your taxes is not just a silly annual routine. Errors and faulty filing can cause some big trouble, so doing it right the first time is critical. Big life changes, like gifts, deaths, marriages, children, big purchases, homeownership, and more, can alter how you file from year to year.
A tax professional can help you work through these changes, no matter how big or small your tax situation. Waters Hardy specializes in tax preparation services for all tax matters.
Waters Hardy Can Help You with Your Tax Return
Don’t let the 2023 tax season overwhelm or intimidate you. Now that you’ve got the basics down, it is time to start gathering your documents and preparing for tax preparation. Still don’t know where to start or have questions? We can help with that, too. Here at Waters Hardy, our team of tax experts can help with preliminary reviews to full-fledged tax filing services.
Contact us now to get started!