The Tax Season Is Coming: 4 Points You Need to Know

Sure, the holiday season has just come to a close, but there’s another season on the horizon that can either strike excitement or dread into the hearts of many – tax season. That’s right, the time of year when we gather our financial documents, fill out forms, and hope for a decent refund.

In this blog post, we’ll cover the basics of the upcoming tax season, important dates, and essential information that every taxpayer needs to know. So, grab your coffee and let’s dive in!

1. Tax Season Start Date

The tax season will open for individual filers on January 29. This means that you can start filing your tax return on that date. It’s important to note that the start date can vary for different tax forms or for specific situations, so it’s always a good idea to double-check with the relevant tax authorities.

1.1 Filing Methods

Before we discuss some key points to keep in mind for this tax season, let’s briefly touch on the different ways you can file your tax return:

• 1.1.1 Online Filing: The most popular and convenient method. You can use tax preparation software or services to file your return electronically.
• 1.1.2 Paper Filing: If you prefer the traditional route, you can print out the necessary tax forms and mail them to the designated tax office.
• 1.1.3 Professional Assistance: If your tax situation is more complex or if you simply prefer to have an expert handle your taxes, you can hire a professional tax preparer, such as a certified public accountant (CPA) or a tax attorney.

2. Important Dates and Deadlines

Mark your calendars! Here are some important dates and deadlines to remember for the upcoming tax season:

2.1 January 29, 2023: Tax Season Begins

This is the date when the IRS will start accepting individual tax returns. It’s the green light to start gathering your financial paperwork and getting organized.

2.2 April 15, 2023: Tax Day

April 15 is the deadline to file your federal income tax return. If you need more time, you can request an extension, but keep in mind that the extension only applies to filing your return, not to paying any taxes owed.

2.3 State Tax Deadlines

Don’t forget about your state tax return! Each state sets its own tax deadlines, and they may vary from the federal deadline. Be sure to check the specific deadlines for your state so you don’t miss any important dates.

3. Changes in Tax Laws

Tax laws are not set in stone and can change from year to year. Here are a few key changes that you should be aware of for the upcoming tax season:

3.1 Standard Deduction Amount

The standard deduction is increasing for the 2023 tax year. For single filers, the standard deduction will be $15,350, up from $12,550 in the previous year. Married couples filing jointly will have a standard deduction of $30,700, up from $25,100. Make sure to take this into account when determining whether to itemize or take the standard deduction.

3.2 Child Tax Credit

The Child Tax Credit has been expanded for the 2023 tax year. Eligible families can receive up to $3,600 per child under the age of 6 and up to $3,000 per child between the ages of 6 and 17. This is a substantial increase from the previous credit amounts, so it’s important to understand how this may impact your tax situation.

3.3 Unemployment Benefits

Unemployment benefits received in 2023 are taxable. If you received unemployment benefits during the year, make sure to report them accurately on your tax return.

4. What You Need to Prepare

Before you sit down to file your tax return, make sure you have all the necessary documents and information at hand. Here’s a checklist to help you get organized:

4.1 Personal Information

• Social Security numbers or ITINs for yourself, your spouse, and your dependents
• Date of birth for yourself, your spouse, and your dependents

4.2 Income Documents

• W-2 forms from all employers
• 1099 forms for any freelance or contract work
• Documentation of any other income, such as rental income or investment income

4.3 Deductions and Credits

• Receipts or documentation of any deductible expenses, such as mortgage interest, medical expenses, or charitable contributions
• Records of any education-related expenses, such as tuition payments or student loan interest

4.4 Bank Account Information

If you’re expecting a tax refund, make sure you have your bank account information ready. This will allow you to receive your refund via direct deposit, which is typically faster and more secure than receiving a paper check in the mail.

Remember, this is just a general list, and your specific tax situation may require additional documentation. It’s always a good idea to consult with a tax professional or refer to the IRS guidelines for a comprehensive list of what you need to prepare.

Hot Take Away

Tax season may not be the most exciting time of year, but it doesn’t have to be stressful either. By staying informed about important dates, knowing about any changes in tax laws, and being prepared with the necessary documents, you can navigate the process with confidence.

If you have any specific questions about your tax situation, it’s always a good idea to consult with a tax professional. They can provide personalized advice based on your unique circumstances.

Now that you’ve learned more about this subject, feel free to read this recent news article on the topic: Tax filing season kicks off Jan. 29. Here’s what taxpayers need to know