Prepare for 2023 Tax Season
The season of frantically gathering a year’s worth of financial documents and racking your brain with the seemingly thousands of forms has arrived. Yes, you guessed it right, it is tax season 2023 is here! If you haven’t yet started the work, get to it now!
Earlier in the month, the IRS (Internal Revenue System) announced that tax filing starts in January and will continue until mid-April. However, it is recommended that you start filing quickly so that you don’t have to rush toward the end.
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What's new for taxes in 2023?
The tax season 2023 brings a few new rules which tax filers need to be aware of. If you are unsure of the correct manner of filing taxes, find a tax preparer near you, and find them soon. You may be able to claim significantly more refund amount if your taxes are done correctly.
Before you start your 2023 tax refund application, you must make a plan for completing the process. In order to ensure you do not forget anything, follow these steps:
- Gather all necessary documents, such as W-2 forms, 1099 forms, and bank statements.
- Determine your filing status and check if you need to file a tax return.
- Review tax law changes and tax brackets for the current year.
- Determine if you’re eligible for any deductions and tax credits.
- Consider using the tax preparation software or hiring a tax professional.
- Make estimated tax payments if required.
- File your taxes by the deadline.
Some new developments for this year are as follows:
- Potentially fewer refund amounts: Because there were no Economic Impact Payments for 2022, taxpayers receiving a tax refund in 2023 won’t receive an additional stimulus payment. Additionally, taxpayers who choose to take the standard deduction rather than itemize their deductions will not be able to write off their charitable contributions.
- Altered Eligibilities: There are a few things that taxpayers should be aware of, including the fact that the tax credit is typically only available for qualifying electric vehicles whose final assembly took place in North America and the existence of a transitional rule for vehicles acquired before August 16, 2022.
- Charitable Deductions: During Covid, taxpayers qualified for a $600 tax deduction for charitable contributions. Standard deduction recipients will not be permitted to deduct charitable contributions above the line beginning in 2022.
Make use of the electronic filing option to get the process completed quicker. For example, you can easily hire a tax preparer for small business if you need to file returns for your business. This can also be done through the electronic option. As such, if you have not yet started, go through the portal, and see which documents you would need for your filing status.
When can I start filing taxes for 2023?
The 2023 tax filing season has already begun. The IRS announced that the 2023 tax filing season would commence on January 23rd, 2023. The IRS is accepting electronic tax returns in addition to paper submissions, just like every year.
You can file your 2023 tax refund as soon as you have all the necessary information and documents, including your W-2 form and any other relevant tax documents. The deadline for individual federal tax returns this year is April 18th, 2023. However, under certain circumstances, you can ask for an extension, and that deadline will fall in October.
Though this may seem like a long bracket, it is only advisable to start the process as quickly as possible. This is especially essential if you are planning to hire tax services near San Bernardino, CA since they would get busier as the filing season progresses.
It is also essential to start early because if there are gaps or missing information in your application, the IRS may return the application and ask you to redo it. You need to ensure that you have ample time to provide the missing information in case such an issue arises.
The process for tax filing is different for businesses, which makes it necessary to know the correct process for that as well. Those who own a small business but are unaware of how they must file taxes for the business simply hire a tax preparer for small business and let them work their magic.
What will tax brackets be in 2023?
The tax rates under the IRS range from 10%- 37% for the year 2023. Determining the exact rate upon which you would be assessed would be determined by a few factors, including your marital status and how you are choosing to file.
For instance, the qualifying rates or income amounts for every category would double if you are married and filing jointly. The income amount will be the same as stated below if you are married but filing separately. Furthermore, if you are the head of the household, the income bracket for every category is slightly higher (at the upper limit).
The tax brackets for 2023 tax refund filing will be as follows:
- $0 – $10,275: 10%
- $10,276 – $41,775: 12%
- $41,776 – $89,075: 22%
- $89,076 – $170,050: 24%
- $170,051 – $215,950: 32%
- $215,951 – $539,900: 35%
- $539,901 and higher: 37%
It sounds very complex to determine which bracket you would have to adhere to, and many find the process rather overwhelming. This is where a tax preparer near San Bernardino, CA can come as a boon. If you are worried about spending tons hiring someone, simply search for the cheapest tax service near me, and find a suitable individual or company offering tax services near San Bernardino, CA.
The notion of preparing and filing your taxes sometimes seems intimidating, especially if it’s your first time, but staying organized, getting in early, and just doing the homework to figure out the best ways to lower your tax burden can all help to make the process much less painful when the deadline comes around.
Furthermore, there are always helpful resources that you can take advantage of to lessen the burden of the process. So get started early and be done with this job as soon as possible.
We are a full-service Tax Preparation company located in California and specialize in providing tax preparation services for small businesses and individuals.
If you’re looking for a reliable and experienced tax prepearer in California, look no further than Kim Krick Enterprise.
Contact us today to learn more about how we can help your business. We look forward to working with you!