Monday, January 23, 2023 began this year’s individual tax filing season and will run for approximately another month and a half before the regular deadline. As so, there are a variety of questions that arise. Are you looking to receive a sizeable tax return this year? Have you accounted for your investments in your tax planning? Does any of it make sense? As we get into the midst of tax season, we want to share a few things to consider for this year’s tax season.
Changes for 2023
With the government still trying to tackle inflation, there have been a few changes to the tax code. The IRS announced adjustments to account for inflation for 2023 tax season. These changes included areas like the standard deductions, the capital gains tax rates, the annual exclusion for gifts, the estate tax exclusion, and several other areas. Many of these changes are increases from the amounts allowed in the different areas, from last year to this year.
The 5 Most Overlooked Tax Deductions
Most of us would prefer to make sure we don’t overpay the government. As a result, we’d like to point out the 5 most overlooked opportunities, which can help your tax bill this year.
- Reinvested Dividends
- Out-of-Pocket-Charity
- State Taxes
- Medicare Premiums
- Income from Inherited Accounts
If any of the above situations applied to you in 2022, be sure to make sure that you and your tax professional account for all of the deductions available.
2023 Filing Deadlines
According to the IRS’s website, for most taxpayers, the filing deadline to submit 2022 tax returns or an extension will be Tuesday, April 18, 2023. The due date is April 18, because April 15 falls on the weekend and the District of Columbia's Emancipation Day holiday is the following Monday, April 17. Taxpayers requesting an extension will have until Monday, October 16, 2023, to file.
Conclusion
There appears to be a lot changes this year by the IRS to combat inflation, which means that your filing might be a little different than it was last year. We hope these things will help you maximize while you are filing your taxes this year. As always, if you have any questions on how your taxes relate to your account, please feel free to reach out to our office.
The content in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.
This information is not intended to be a substitute for individualized tax advice. We suggest that you discuss your specific tax situation with a qualified tax advisor.