The last three years have been shaped by the pandemic in more ways than one. Stimulus payments, government economic relief efforts, and pandemic tax breaks have changed the process of filing for taxes and the projected refunds. Don’t get too comfortable though: this tax season is looking a lot different, as many of those benefits have dissolved.
What’s more, you still have to file and pay your taxes on time! (We know.) That’s why we are serving you with a handful of last minute 2023 tax filing tips that you should definitely know about. You have until April 18 (unless you file for an extension, giving you until October 16). The IRS expects more than 168 million individuals to file tax returns this season – so make sure you’re getting it done!
So what can you do to make this filing season a bit less stressful for yourself? Here are a few tax tips that may help.
What’s New About the 2023 Tax Season?
Listen, don’t kill the messenger. According to the IRS, refunds may very likely be smaller in 2023. For example, because there were no Economic Impact Payments for 2022, there will be no additional stimulus payments for taxpayers. Taxpayers also will not have the option to deduct any charitable contributions they made (like they could on 2021 returns) when they don’t file the standard deduction. Hope this softens the blow!
Don’t Wait Until the Last Minute
We’ve noted before that nearly 25% of Americans file their tax returns just two weeks before the deadline. So while you’re not alone if you wait, you’ll be better off (and far less stressed) if you go ahead and get it done now. And remember, even if you can’t afford to pay your taxes, you should still file a return.
File Electronically, and Choose Direct Deposit
Filing paper tax returns requires more time and energy for the IRS to process, creating more unwanted space between you and your refund. According to the IRS, “Accurate returns filed electronically were mostly processed automatically, with refunds out the door within 21 days for those using direct deposit.”
Advance Child Tax Credit Payments: What to Know
If you received these payments in 2021, you should have received a Letter 6419 from the IRS, detailing the amount of advance Child Tax Credit payments that you received in 2021. If you can’t find it, get a copy—you’ll need it for this year’s filing. If you received less than the amount that you’re eligible for, you’ll claim a credit for the remaining amount of Child Tax Credit on your 2022 tax return. If you received more than the amount that you’re eligible for, you may need to repay some or all of that excess payment when you file. The IRS website has a full page about reconciling your credits—a qualified accountant can help if you’re overwhelmed.
More People Eligible for the Premium Tax Credit
In case you didn’t know, the Premium Tax Credit is designed to support families and individuals that purchase health insurance through the Health Insurance Marketplace to cover their premiums. If you are qualified to receive this credit, be sure to file Form 8962, (PTC). Because of the American Rescue Plan Act of 2021 (ARPA), taxpayers with a household income of least 100% of the federal poverty line are eligible to qualify for PTC in 2022 tax returns.
Many of us count on tax refunds to make a large purchase or book a vacation. The IRS cautions people to wait it out this year. According to their website, “the IRS cautions taxpayers not to rely on receiving a refund by a certain date, especially when making major purchases or paying bills. Some returns may require additional review and may take longer.”
Get Tax Help
There’s certainly a lot to consider this year when filing your taxes! If you’re unsure, hiring a professional certified accountant may be your best bet. There’s still time to get help with your 2022 tax filings. Give us a call if we can be of assistance!
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