A Basic Tax Guide to Filing Your 2023 Tax Returns
A Basic Tax Guide to Filing Your 2023 Tax Returns
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For most of us, filing our taxes is not a time we look forward to. Most of us don’t want to deal with it, or we are ill-equipped to handle it, so they pay a professional to do it. There’s a reason that tax preparers have to be licensed, or at least registered. But that doesn’t mean we shouldn’t prepare ourselves and have a basic understanding.
Here are six things to know that will help get you through the tax season.
Do I need to file?
Do I need to file?
If you earned taxable income during the 2022 calendar year, you’ll need to file income taxes. In some cases, if you received non-taxable income, such as Roth IRA distributions, you may not be required to file a tax return. But, you may need to file if you are receiving dividends from an account such as a savings account.
If you earned taxable income during the 2022 calendar year, you’ll need to file income taxes. In some cases, if you received non-taxable income, such as Roth IRA distributions, you may not be required to file a tax return. But, you may need to file if you are receiving dividends from an account such as a savings account.
Most forms of income are taxable. This includes unemployment income, dividends (from banks or investments) , income from “gigs”. Though still new, sales from digital assets such as crypto and Non-fungible tokens (NFTs), must be reported.
Most forms of income are taxable. This includes unemployment income, dividends (from banks or investments) , income from “gigs”. Though still new, sales from digital assets such as crypto and Non-fungible tokens (NFTs), must be reported.
If you don’t know whether you should file a tax return, the IRS provides a questionnaire to help you. Find out if you need to file a tax return. When in doubt, ask a licensed tax professional.
If you don’t know whether you should file a tax return, the IRS provides a questionnaire to help you. Find out if you need to file a tax return. When in doubt, ask a licensed tax professional.
What do I need to bring?
What do I need to bring?
You'll need to provide any documentation that shows income. Whether it’s full/part time employment, retirement income, or government benefits.
You'll need to provide any documentation that shows income. Whether it’s full/part time employment, retirement income, or government benefits.
If you are claiming tax credits, you may need to bring supporting documents for that tax credit. The same will apply to any deductions you are looking to apply, if you’re not taking the standard deduction. Remember, you can only take itemized deductions or the standard deduction, not both.
If you are claiming tax credits, you may need to bring supporting documents for that tax credit. The same will apply to any deductions you are looking to apply, if you’re not taking the standard deduction. Remember, you can only take itemized deductions or the standard deduction, not both.
Some examples of income documentation:
Some examples of income documentation:
From your employer:
W-2
For individual contractors and gig-workers
1099-K: Gross payment (pre-taxed) received for each payment settlement
1099-MISC: Miscellaneous income such as dividends, cash prizes, or other income payments
Where can I file my taxes?
Where can I file my taxes?
You can do it from your own home. If you want to electronically file, or “e-file”, but don’t know where to look, the IRS will help you find authorized e-file providers. If you’re more comfortable using and paying a company like TurboTax to do this for you, that’s ok.
You can do it from your own home. If you want to electronically file, or “e-file”, but don’t know where to look, the IRS will help you find authorized e-file providers. If you’re more comfortable using and paying a company like TurboTax to do this for you, that’s ok.
The IRS provides free tax filing guides and software if your adjusted gross income is less than $73,000. If your annual income is more than $73,000, you can still file for free. If you choose to use the IRS’s Free File Program, you can do everything from the comfort of your home.
The IRS provides free tax filing guides and software if your adjusted gross income is less than $73,000. If your annual income is more than $73,000, you can still file for free. If you choose to use the IRS’s Free File Program, you can do everything from the comfort of your home.
You can also go to any local tax office, such as H&R Block. If you would rather sit down with a qualified individual, you can find a local prepare in the IRS Directory of Federal Tax Return Preparers with Credentials and Select Qualifications.
You can also go to any local tax office, such as H&R Block. If you would rather sit down with a qualified individual, you can find a local prepare in the IRS Directory of Federal Tax Return Preparers with Credentials and Select Qualifications.
If you plan to have a professional prepare your taxes, make sure they are a registered tax preparer, or licensed individual. It’s important to know the capabilities and limitations of different tax professionals.
If you plan to have a professional prepare your taxes, make sure they are a registered tax preparer, or licensed individual. It’s important to know the capabilities and limitations of different tax professionals.
What is the deadline to file my taxes?
What is the deadline to file my taxes?
The deadline to file your 2023 tax return is set for Tuesday, April 18, 2023.
The deadline to file your 2023 tax return is set for Tuesday, April 18, 2023.
If you are requesting an extended deadline, you will still need to file the request by April 18. Filing for an extension in 2023 will give you until October 16, 2023.
If you are requesting an extended deadline, you will still need to file the request by April 18. Filing for an extension in 2023 will give you until October 16, 2023.
How long does it to receive my refund?
How long does it to receive my refund?
If you e-file your tax return, most tax returns are processed and issued in less than 21 days, according to the IRS. This could vary depending on how long it takes your tax office to process your returns. If you mailed your return to the IRS, it could take up to 8 weeks to receive your tax returns.
If you e-file your tax return, most tax returns are processed and issued in less than 21 days, according to the IRS. This could vary depending on how long it takes your tax office to process your returns. If you mailed your return to the IRS, it could take up to 8 weeks to receive your tax returns.
How much should I expect from my tax return?
How much should I expect from my tax return?
This will depend on several things. Your filing status (married, single, married filing jointly, etc.), and the number of dependents will both affect how much is withheld each paycheck. Considering your tax bracket, tax credits, and tax deductions, your return could change.
This will depend on several things. Your filing status (married, single, married filing jointly, etc.), and the number of dependents will both affect how much is withheld each paycheck. Considering your tax bracket, tax credits, and tax deductions, your return could change.
The general rule of thumb is that you want your return to be as small as possible, without owing money to the IRS. Another way to look at your tax return is the government took too much money out of your paycheck and now must pay it back, interest free.
The general rule of thumb is that you want your return to be as small as possible, without owing money to the IRS. Another way to look at your tax return is the government took too much money out of your paycheck and now must pay it back, interest free.
If you normally receive a large tax return, you should consider changing your withholding. If you’re not sure how much tax should be taken out of each paycheck, the IRS provides a free tax withholding estimator. Once completed, bring a filled-out W-4 form to your HR or payroll offices.
If you normally receive a large tax return, you should consider changing your withholding. If you’re not sure how much tax should be taken out of each paycheck, the IRS provides a free tax withholding estimator. Once completed, bring a filled-out W-4 form to your HR or payroll offices.
The Takeaway
The Takeaway
Taxes can be a confusing topic. But you don’t have to be completely unprepared. Though they’re nobody’s favorite entity, the IRS website provides a large amount of information that can help you prepare your tax returns.
Taxes can be a confusing topic. But you don’t have to be completely unprepared. Though they’re nobody’s favorite entity, the IRS website provides a large amount of information that can help you prepare your tax returns.
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