Here's What To Know About Filing Your 2023 Tax Returns
Dates, how to prepare, and info on the free tax filing tool from the IRS
According to the announcement made on Internal Revenue website, you can officially begin filing your taxes on Monday, January 29th, making this date the official start of the U.S. tax season this year.
How soon can you file your 2023 taxes in advance of the official start of tax season?
Per the announcement, even though the IRS won't officially start accepting and processing tax returns until January 29, 2024, individuals utilizing software companies or tax professionals don't need to postpone working on their taxes until then.
This is because the majority of software companies or electronic tax tools used by tax professionals will accept and hold electronic submissions until the IRS is prepared to commence processing the taxes returns.
Fun fact: The IRS anticipates receiving over 128.7 million individual tax returns by the tax deadline on April 15, 2024.
The IRS launches their own tax filing platform, Free File
The IRS is also launching their own free tax filing tool, Free File, which will be available on IRS.gov starting on January 12th, 2024 in advance of the filing season opening.
Their tool is being launched in a phased approach as they test it and is slated to be available in mid-March to eligible tax payers.
The below is quoted directly from the IRS website in regards to what you can expect from Free File:
What Is IRS Free File?
The IRS Free File Program is a public-private partnership between the IRS and many tax preparation and filing software industry companies who provide their online tax preparation and filing for free. It provides two ways for taxpayers to prepare and file their federal income tax online for free:
Guided Tax Preparation provides free online tax preparation and filing at an IRS partner site. Our partners deliver this service at no cost to qualifying taxpayers. Taxpayers whose AGI is $73,000 or less qualify for a free federal tax return.
Free File Fillable Forms are electronic federal tax forms, equivalent to a paper 1040 form. You should know how to prepare your own tax return using form instructions and IRS publications if needed. It provides a free option to taxpayers whose income (AGI) is greater than $73,000.
Learn more about what you need to be eligible to use Free File, here.
“Where’s my refund” tool improved
The IRS has also announced improvements to the “Where’s my refund tool“ the popular tool used to check the status of pending tax refunds.
While the current tool offers only basic information, prompting many taxpayers to contact the IRS for more details on their refund status, the upcoming updates will provide clearer and more detailed messages about the status of refunds in simple language.
What you need to do your own taxes
Note: Below is general guidance on what you need to do your own taxes, if you are unsure or need extra guidance, be sure to consult a tax professional.
If you chose to do your own taxes, gather all the paperwork and information you need ahead of time and put everything in one place to save time.
Here's what you need to be prepared do your own taxes:
1. Gather your Paperwork
W-2s: Get a W-2 form from each job. Your employer usually gives this to you. If not, ask your HR department.
1099s: If you have a side job or work independently, get a 1099 form from each client showing your earnings.
Interest Statements: If you own a home and paid over $600 in mortgage interest, use the 1098 form to report it.
Receipts for Deductible Expenses: If you have a business, keep receipts for expenses you can deduct from your income.
This is general information so be sure to assess your unique situation for any other forms you might need.
2. Choose Your Filing Status
You’ll need to select one of the following filing statuses:
Single: If you're not married, divorced, or legally separated.
Married Filing Jointly: If you're married by December 31 of the tax year.
Married Filing Separately: You can choose this, but it might lead to higher taxes. Check both ways to decide.
Head of Household: If you're not married but have a home for yourself and at least one dependent.
Widow/Widower with Dependents: If your spouse passed away during the year, and you have a dependent child.
Decide your status based on IRS rules; it's usually straightforward.
3. Know Your Deductions
It’s also important to understand what deductions and credits you qualify for. Don't pay more because you didn't know about credits or deductions.
Look for deductions like childcare costs, charitable contributions, and education credits. Include them in your tax return.
Learn more about the 2023 credits and deductions on the IRS website:
When is it a good idea to do your own taxes?
Doing your own taxes can take some time and might feel tedious. That said it could save you money, and can make you feel more in control of your finances.
If you decide to do it yourself, pay attention to the details, be ready for a few hours of work, and don’t forget to check and double check for any errors. Most tax filing tools make it an easy process as long as your tax situation is not complex.
When should you ask for professional help?
If you don't have many hours to spare or if your taxes are complicated, it's a good idea to get help from a tax professional. If you have lots of W-2s, 1099s, or your own business or side hustle, a professional can assist you. They can help you understand everything and don't miss any opportunities to save money.
Happy tax season!