While you may have been focusing on those New Year’s resolutions as 2023 gets into full swing, there’s something else that needs some of your energy too. Tax season! Now it might not be as exciting (or rewarding) as picking up a new hobby or training for a personal best, but getting your head around the 2023 tax season pays off.
Luckily, there are no major changes to worry about. The IRS has released all the information you need to consider ahead of your return.
Here are some dates for your calendar:
23 January: This was the start of the 2023 tax season – 2022 individual returns are now accepted for processing.
27 January: Earned Income Tax Credit Awareness Day! This day raises awareness of valuable tax credits available to many people – including the option to use the prior-year income to qualify.
18 April: Deadline day. You should file your 2022 tax return or request an extension and pay the tax owed.
16 October: For those requesting an extension, this is your deadline date.
Beyond dates, there has been a change to the standard deduction. The term refers to the minimum amount of income you must have earned to be required to pay taxes, meaning you can reduce your tax bill or be free from income tax entirely. The standard deduction increases to $13,850 for single filers or married but filing separately $20,800 for the head of households, and $27,700 for married taxpayers filing jointly.
There are also changes to the Child Tax Credit. This was increased last year, but Congress failed to pass an extension. If parents are still eligible to file, you will get $2,000 CTC for the 2022 tax year.
Unfortunately, the IRS has said there will be fewer refunds compared to 2021 and 2020 as pandemic-related support winds down. FYI, last tax season, the average refund was 14% more than the average refund a year earlier.
We didn’t want to end with bad news. So if you need any more support, and want to feel prepared and organized, just check out MAJORITY’s ultimate tax prep list right here. Together, we’ve got this.
And don't forget!
You can also get your tax refund deposited directly into your MAJORITY account. Just give the IRS your account details so they know where to send your money.