In this article on the Tax Organizer 2023, we will discuss the essential tax filing topics. Continue reading, as this post will certainly help you in your journey.
The Internal Revenue Service formally proclaimed on January 23, 2023, that the 2022 tax filing season had officially begun. The IRS would start receiving and processing returns for the 2022 tax year. Most of the estimated 168 million individual tax returns will be submitted by the April 18 deadline. This year, filers have been allowed an extra three days to submit their documents because of calendar oddities.
What to Expect in 2023 Taxes?
After the pandemic severely disrupted tax season operations for three consecutive years, the Internal Revenue Service took further measures in 2023 to restore normalcy. To better help taxpayers and comply with the Inflation Reduction Act, passed in August, the Internal Revenue Service has increased in-person tax preparation personnel and added over five thousand extra telephone assistants. Before beginning their tax returns, people are urged by the IRS to compile all relevant paperwork. The time to process your tax return is directly related to its thoroughness. As a bonus, you will not have to file an updated return nearly as often, and your refund will arrive faster.
The Internal Revenue Service recommends taxpayers evaluate their finances thoroughly. You must do it to ensure you do not miss out on potentially beneficial tax credits, such as the Earned Income Tax Credit.
When Can I Start Preparing Taxes for 2023?
IRS Free File
The IRS Free File program is scheduled to start on January 13, during which participating providers will start accepting completed tax returns. These providers will retain the returns until they can electronically file them with the IRS. Several tax preparation software companies and tax professionals in the commercial sector will be accepting and processing tax returns before January 23 to submit them once the IRS systems become operational.
The Internal Revenue Service’s Free File program, exclusively accessible through the official IRS website, offers eligible taxpayers an annual income of $73,000 or less in 2022 to electronically file their tax returns at no cost. This is possible using reputable tax filing software provided by commercial entities specializing in tax preparation services. Free File Fillable Forms, a component of this initiative, are accessible to individuals across all income levels and offer complimentary electronic forms for self-completion and filing.
Important Filing Season Dates
- Taxpayers ought to remember several significant dates for the current filing season.
- On January 13, the Internal Revenue Service (IRS) Free File program becomes available for use by eligible taxpayers.
- The deadline for submitting the fourth quarter estimated tax payment for the tax year 2022 is January 17.
- The Internal Revenue Service will begin collecting and processing 2022 individual tax returns on January 23, 2023.
- On January 27, we celebrate Earned Income Tax Credit Awareness Day to inform the public about these beneficial tax benefits.
- On April 18, individuals must submit their 2022 tax returns or request a business tax extension and make the tax payments. The observance of the Emancipation Day holiday in Washington, D.C., has an impact on this deadline.
- The deadline for individuals seeking an extension on their 2022 tax returns is October 16.
Will Tax Returns Be Different In 2023?
Changes Your Tax Organizer 2023 Must Know
Due to the rollback of several 2021 tax credits, you may receive a smaller refund this year. A variety of tax credits, including those for children and those who care for them, will be adjusted for 2023.
- Those who qualified for the CTC and received $3,600 per dependant in 2021 will get $2,000 in 2022.
- The EITC cap has been reduced from $1,500 in 2021 to $530 in 2022 for qualifying taxpayers without children.
- The Child and Dependent Care Credit will increase from $8,000 in 2021 to a maximum of $2,100 in 2022.
Different Ways to File Your Taxes with Tax Organizer 2023
If you are among the approximately 100 million individuals who possess the eligibility to submit their tax return incurring no charges, you can keep the entirety of your refund funds by selecting from a range of three distinct alternatives.
In-person Full-Service Free Tax Preparation
If you meet the requirements outlined below, you may avail yourself of in-person, comprehensive tax preparation services through the IRS Volunteer Income Tax Assistance, AARP Foundation Tax-Aide, and The Tax Counselling for the Elderly programs. These free programs have been operational for over fifty years and employ tax preparers certified by the IRS while adhering to rigorous IRS quality standards. This implies you will get a precise return.
If you desire to arrange an appointment with the VITA/TCE and Tax-Aide sites, you must meet specific criteria.
- Typically, make $60,000 or less.
- Are disabled.
- Have little English or speak English as a second language.
- Are 60+.
Free Self-Preparation
Using IRS Free File, tax organizer 2023 may easily create and submit your tax return:
- Help to file your taxes is available if your household income is $73,000 or less.
- You may file your own taxes online using fillable forms if your income is over $73,000.
Free Tax Filing for Service Members
If you meet the following requirements, you may use MilTax’s free tax preparation and filing services:
- Eligible active-duty service members, their wives, and their dependent children.
- Regardless of whether they are currently activated, those who serve in the National Guard or Reserves.
- Veterans of the United States Coast Guard who are at least one year removed from their honorable release are eligible.
- A qualified family member handles the service member’s financial and personal matters while the service member is away on deployment.
- An authorized relative of a critically injured military member who cannot make decisions for themselves.
- Surviving family members of all active duty, National Guard, and reserve military personnel who die on active duty or during activation are eligible.
- Some civilians work with the Defence Department’s expeditionary force.
Know the Difference between Refund Advance Loans and Refund Anticipation Checks
Refund Anticipation Check (RAC)
Should you opt for the services of a tax organizer 2023 who charges a fee, and if you lack the requisite funds to cover said fees, it is reasonable that certain tax preparers extend to you the option of obtaining a refund anticipation check. A refund anticipation cheque lets you remunerate the tax preparation fee from your refund rather than in advance. Upon receiving your refund, the tax preparer shall deduct the RAC fee, filing fee, and any other service fees levied upon you. A RAC, or Refund Anticipation Check, does not expedite the delivery of your refund more expeditiously.
The range of RAC fees spans from $30 to $50, encompassing a spectrum of financial obligations that individuals may encounter.
Refund Advance Loan (RAL)
You may request an advance on your tax refund from some fee-based preparers by applying for a refund advance loan (RAL). It is a term used by certain tax preparers, who may refer to it as a “tax refund advance.” If you choose for an advance, you will borrow money from the preparer up front, and once the IRS sends your return to the preparer, you will get the rest, less the RAL cost and any other service fees the preparer paid you. The amount of a RAL is usually calculated as a certain percentage of the tax return you expect to receive.
- The services offered by tax preparers vary greatly. While some companies do not charge any interest or fees for RALs, others may do so.
- Remember that the IRS normally sends most refunds in fewer than 21 days when you file online, so you may wind up paying a hefty RAL cost for a relatively quick advance.
- When deciding on a financial product or service, it is important to consider all associated costs and fees, as well as the timing of the transaction.
Number of Returns filed
An impressive 94% of the 28.8 million tax returns received as of February 10 have been submitted electronically. This substantial proportion of electronic submissions is crucial in facilitating the expedited processing of tax returns. Besides this, refunds for tax returns that have been submitted electronically are typically processed and granted within a timeframe of approximately three weeks. However, for paper tax returns that have been meticulously completed in their entirety and meet the criteria for a refund, the processing time is extended to approximately six to eight weeks before the refund is issued.
The usage of e-file by tax professionals has risen at a pace of over 11% when compared to the same period in 2022. Increases in the number of people who pay taxes led to a 3.4% rise in the previously mentioned figure.
Wrapping Up!
Before filing your tax return, it is wise to consider certain factors if you expect the possibility of receiving a refund. Opting for electronic filing and selecting direct deposit is the most expeditious method to receive your refund.
The Internal Revenue Service (IRS) typically disburses refunds within 21 days when employing the direct deposit method. The duration of paper check refund issuance may be significantly extended. If you are looking for a tax organizer 2023 regarding your tax filing preparation, call us at the toll-free number (800) 580-5375.