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In the upcoming tax season, there are new rules or changes to important amounts that might affect your federal tax return. We’re here to explain these significant changes in tax laws and provide you with the necessary information to help you grasp how they might impact your taxes.<\/span><\/p>\n Let’s start with the basics: when you can submit your return, the deadline for filing your 2023 tax return, and what the standard deduction is for this year. Once we cover these fundamentals, we’ll delve into updates in tax laws, adjustments, and essential details to make filing your taxes easier for you.<\/span><\/p>\n Read more: 8 Tips to Tax-saving for Year-end Planning<\/a><\/p>\n The IRS hasn’t set a specific date for people who prefer to file their tax returns early. Typically, the window for filing opens around late January. We’ll keep you posted and update this information as soon as the IRS makes an announcement.<\/span><\/p>\n The due date for submitting your 2023 tax return is by midnight on Monday, April 15, 2024, unless you request an extension. Residents in regions hit by natural disasters might have different, later deadlines for filing their taxes.<\/span><\/p>\n If you can’t file your taxes by April 15, 2024, you have some choices available to you.<\/span><\/p>\n You can file for an extension, which grants you an extra six months until October 15, 2024, to complete and submit your return. However, if you anticipate owing taxes, it’s essential to estimate the amount owed and make that payment along with your extension form.<\/span><\/p>\n Another possibility is filing a late return without requesting an extension. If you don’t owe taxes or are expecting a refund, you might not face a penalty for filing late. However, if taxes are due, there could be penalties incurred for late filing.<\/span><\/p>\n Even if you don’t owe taxes or expect a refund, it’s advisable to file as soon as possible. This ensures a timely refund receipt or confirms that you don’t owe anything. Further details on filing returns at no cost and claiming your tax refund can be found below.<\/span><\/p>\n During the 2022 tax year (the taxes you file in 2023), key tax benefits linked to COVID relief, like the Child Tax Credit, either returned to previous tax rules before the American Rescue Plan or ceased to exist. This shift led to taxpayers noticing smaller refunds compared to when COVID-19 relief measures were active. While these aren’t new tax changes for 2023, it’s important to highlight them as a reminder, especially if you’re reapplying for these significant tax advantages after the period of COVID-19 relief.<\/span><\/p>\n The major tax benefits affected by provisions reverting to pre-American Rescue Plan tax rules that might result in lower tax refunds include the Child Tax Credit, the Child and Dependent Care Credit, and the Earned Income Tax Credit:<\/span><\/p>\n For the tax year 2023, here’s how the Child Tax Credit has changed:<\/span><\/p>\n Similar to the 2022 tax year, the provisions for the Child and Dependent Care Credit in 2023 remain as they were before the COVID relief offered by the American Rescue Plan:<\/span><\/p>\n The Earned Income Tax Credit (EITC) is a tax benefit designed for low- to moderate-income workers and families. This credit can lower the taxes you owe and possibly result in a larger refund. For the 2023 tax year, this tax credit can reach a maximum of $7,430 for a family with three children. Taxpayers with no children must be at least 25 years old but under 65 to qualify for this credit.<\/span><\/p>\n The highest contribution limits for 401K plans have increased to $22,500 for 2023 ($30,000 for individuals aged 50 and above). Similarly, the maximum contribution limit for traditional and Roth IRAs has gone up to $6,500 ($7,500 for individuals aged 50 and above). You’re allowed to contribute for 2023 to your IRA until the April deadline, and there’s a possibility of claiming a deduction for this contribution amount on your 2023 taxes (the ones filed in 2024).<\/span><\/p>\n You can contribute to your Health Savings Account up to $3,850 for self-only coverage and up to $7,750 for family coverage. Remember, you might be eligible to deduct contributions directly made to your health savings account when filing your taxes.<\/span><\/p>\n Contributions up to $3,050 are permitted. If your employer’s plan allows carrying over unused amounts, the maximum carryover amount for 2023 is $610.<\/span><\/p>\n For business-related travel, keep track of your business mileage as you can deduct it. For tax year 2023, the mileage rate for business purposes is 65.5 cents per mile. Additionally, if you traveled for medical appointments, you might be able to deduct expenses related to these visits at a rate of 22 cents per mile. If you drove for volunteering purposes for a recognized charity (501(c)(3)), you might be eligible to deduct your mileage expenses at a rate of 14 cents per mile.<\/span><\/p>\n If you covered eligible adoption expenses during 2023, you might qualify for a credit of up to $15,950 on your 2023 tax return.<\/span><\/p>\n In 2023, the annual gift tax exclusion stands at $17,000 ($34,000 for married couples). This means you can gift up to $17,000 without incurring taxes on that specific amount.<\/span><\/p>\n If you received assistance from unemployment insurance, keep in mind that you’ll need to pay taxes on the payments received. You should receive a 1099-G form reporting the unemployment benefits received.<\/span><\/p>\n For self-employed individuals, various deductions are available, such as business travel mileage and the part of your home used as a home office. TurboTax Premium can assist you by exploring industry-specific deductions to ensure you don’t miss out on business-related deductions linked to your self-employed income.<\/span><\/p>\n However, if you’ve been working from home due to your employer’s arrangement, unfortunately, you won’t be eligible to claim deductions for your home expenses. This deduction applies exclusively to self-employed workers.<\/span><\/p>\n If 2023 was your first year working a side job, receiving unemployment benefits, or trading stock, you may receive more tax forms than before.<\/span><\/p>\n Here are some common tax forms where your income might be reported, based on various scenarios:<\/span><\/p>\n If you’re among the approximately 100 million eligible individuals for free tax return filing, you can retain your entire refund by choosing from these alternatives.<\/span><\/p>\n If you meet the criteria outlined below, you might qualify for in-person, full-service tax preparation services provided by the IRS <\/span>Volunteer Income Tax Assistance (VITA)<\/span><\/a>, AARP Foundation Tax-Aide, and The Tax Counseling for the Elderly (TCE) programs. These cost-free programs have been in operation for over 50 years, staffed by IRS-certified tax preparers meeting rigorous IRS quality standards. This ensures the accuracy of your tax return.<\/span><\/p>\n You can book an appointment at VITA\/TCE and Tax-Aide sites if you:<\/span><\/p>\n Note: Some VITA or AARP Tax-Aide sites operate year-round, while others close after the tax season. While searching for a site, review the “Dates open” column to identify a location planning to remain open after April 15, 2024.<\/span><\/p>\n If your income is $73,000 or less, you have options to receive assistance from IRS-certified volunteers to prepare your return:<\/span><\/p>\n MyFreeTaxes: You can prepare your return with guidance from IRS-certified volunteers using <\/span>MyFreeTaxes<\/span><\/a> when needed.<\/span><\/p>\n GetYourRefund: Connect virtually with VITA providers across the country to have your return prepared by signing up through <\/span>GetYourRefund<\/span><\/a> if your income is $66,000 or less.<\/span><\/p>\n If your income is $73,000 or less, you might qualify to prepare and file federal income tax returns for free online using guided tax preparation software available through<\/span> IRS Free File<\/span><\/a>. However, the eligibility for free products varies among providers, and some may charge fees for state returns. It’s essential to carefully review the offers and access this service through the IRS link rather than directly going to the guided tax preparation software website.<\/span><\/p>\n<\/span>When can I File My 2023 Tax Return? (The Taxes You File in 2024)<\/span><\/span><\/h2>\n
<\/span>When is the Deadline for Filing my 2023 Tax Return?\u00a0<\/span><\/span><\/h2>\n
<\/span>What’s the Deadline to File For a Tax Extension?\u00a0<\/span><\/span><\/h2>\n
<\/span>What are the Changes in Taxes for 2023 and How Do They Affect You?<\/span><\/span><\/h2>\n
Child Tax Credit<\/span><\/h3>\n
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Child and Dependent Care Credit<\/span><\/h3>\n
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Earned Income Tax Credit (EITC)<\/span><\/h3>\n
<\/span>What are some of the changes in important amounts that affect my taxes?<\/span><\/span><\/h2>\n
Retirement Plan Contributions<\/span><\/h3>\n
Health Savings Account<\/span><\/h3>\n
Flexible Spending Account<\/span><\/h3>\n
Deductible Mileage Rates<\/span><\/h3>\n
The Adoption Credit<\/span><\/h3>\n
Annual Gift Tax<\/span><\/h3>\n
<\/span>What else Should I Pay Attention to When Filing My Taxes?<\/span><\/span><\/h2>\n
Unemployment Benefits<\/span><\/h3>\n
Business and Home Deductions<\/span><\/h3>\n
<\/span>What Tax Forms and Documents Should I Gather?<\/span><\/span><\/h2>\n
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<\/span>Different Options for Filing Your Taxes<\/span><\/span><\/h2>\n
In-Person Full-Service Free Tax Preparation<\/span><\/h3>\n
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<\/span>Remote Full-Service Free Tax Preparation<\/span><\/span><\/h2>\n
Free Self-Preparation<\/span><\/h3>\n
Free Tax Filing for Servicemembers<\/span><\/h3>\n