Here is what you need to know for tax season:
1. Tax Day is always April 15, unless it falls on a weekend or public holiday. This year, the deadline is April 15, which is a Monday.
2. Typically, taxpayers can start filing their taxes in late January. The specific date for submitting 2023 returns is yet to be announced but is expected to be around January 23 or 24.
3. Income tax brackets have increased by 7 percent for 2023, reflecting high inflation rates. The brackets are progressive, meaning the more you earn, the higher your tax rate. The new tax brackets for individual filers and married couples filing jointly are outlined in the article.
4. The standard deduction for the 2023 tax year has increased by about 7 percent. It is $13,850 for single filers and $27,700 for married, joint filers. Taxpayers can choose to take the standard deduction or itemize their deductions if the total exceeds the standard deduction.
5. Extra standard deductions are available for individuals over the age of 65 or blind, outlined by the IRS. The additional standard deduction is $1,850 for single filers or heads of households and $3,000 for married couples filing jointly if both spouses are over the age of 65.
6. Itemized deductions for the 2023 tax year remain mostly the same as previous years, including deductions for state and local taxes, mortgage interest, medical expenses, and charitable donations.
7. Eligible taxpayers in 12 specific states can participate in the IRS Direct File pilot scheme, which allows for free tax preparation and filing directly with the IRS.
8. The contribution limits for employee 401(k) plans and individual retirement accounts (IRA) for the 2023 tax year are outlined in the article.
9. The income limits for child tax credits are based on modified adjusted gross income and vary depending on the taxpayer’s filing status.
10. Tax refund estimators are available through tax return companies like TurboTax and H&R Block, as well as nonprofit organizations like AARP. Most refunds are issued within 21 calendar days, and paper returns by check may take longer.
Remember to stay informed, gather all necessary documents, and consider seeking professional help if needed. Filing accurately and on time will help you avoid penalties. Stay organized and prepared to make the tax season process smoother.
