Tax Day is coming up soon. Before April 18, here is everything you need to know.
Nothing in this world is certain besides death and taxes, according to Benjamin Franklin.
Even though Tax Day always comes around, it can still be intimidating. Whether you choose to work with an accountant, file your taxes electronically, or do it manually, it is best to be ready so that you aren’t caught off guard this tax season.
Why was Tax Day 2023 moved from April 15 to April 18?
April 18 in 2023 is Tax Day. Tax Day traditionally occurs on April 15; however, this year, April 15 falls on a Saturday, and the following weekday, April 17, is Emancipation Day in Washington, D.C. Washington, D.C. holidays have the same legal effects on tax deadlines as do federal holidays.
When is the deadline for an extension?
Those who need an extension and are unable to file before or on April 18 will have until October 15, 2023, to do so. Be aware that an extension only gives you more time to file your tax returns; it does not give you additional time to pay any taxes you may owe. It’s a good idea to file your taxes on time if you owe money to avoid any penalties.
What changes are made to Tax Day 2023?
Some tax credits, including the Earned Income Tax Credit (EITC), Child and Dependent Care Credit, and Child Tax Credit (CTC), will return to 2019 levels, which means those who qualify may get a smaller refund than they did in 2018.
If qualified, those who received a $3,600 credit per dependent for the CTC in 2021 will receive a $2,000 credit for the 2022 tax year.
The EITC will increase from $1,500 in 2021 to $500 in 2022 for eligible taxpayers without children.
In 2022, the Child and Dependent Care Credit, which was $8,000 in 2021, will increase to a maximum of $2,100.
When will I get my tax refund after filing?
Most tax refunds are issued by the IRS less than 21 calendar days after filing. However, it might take up to four weeks to receive your refund if you file on paper rather than electronically.
Many people have relocated as a result of the pandemic’s irreversible change in workplace norms. Follow these recommendations to make sure your paperwork is submitted correctly if you relocated during the past year while continuing to work for the same employer.
- Determine your residency status: You might be considered a resident of a new state for tax purposes if you move there and change your address. However, you might still be regarded as a resident of the former state and be required to file taxes there if your permanent address is there and you spend a lot of time there.
- Gather your tax documents: Collect all the tax documents that you received from your employers, banks and other sources of income. Make sure you have documents from both the state you left and the state you moved to.
- Determine if you need to file state taxes in multiple states: You might be required to file state taxes in both your old state and your new state, depending on your residency status and the sum of money you made in each state. To find out what paperwork you need to file, research each state’s tax regulations.
- Use tax software or hire a tax professional: Filing taxes can be complicated, especially when you move mid-year. Consider using tax software or hiring a tax professional to help you navigate the process and ensure you file correctly.
- File your federal taxes: Use your W-2 forms and other tax documents to file your federal tax return, regardless of where you lived and worked throughout the year.
- File your state taxes: Make sure to submit the appropriate forms for each state if you need to file state taxes in more than one state. Pay any taxes due in accordance with the directions provided by each state’s tax authority.