2023 Tax Season: What’s New and What You Need To Know
If you are like most people, preparing for the tax season feels stressful and overwhelming, not to mention confusing. If you want to get a jump on your tax responsibilities this year, you can start by learning about any changes for 2023.
This quick guide will provide helpful information on tax season 2023.
When Should I File Taxes 2023?
You will need to file your taxes by April 18, 2023. This is the tax deadline for the US. There may be some preparations you need to make ahead of time, so it is essential to be aware of the tax deadline and create a plan of action to ensure that your taxes are filed on time.
How Will Taxes Change in 2023?
There are a few changes scheduled for this upcoming tax season. You need to be aware of these changes to ensure you have all of the information you need for filing your taxes, as well as to ensure you get the proper refund on your taxes if you are owed one. Let’s look at some of the big changes this year.
CTC – The CTC or Child Tax Credit is a tax credit intended to help pay for the cost of raising children. If you owe taxes on your income, this money will be applied on your behalf to decrease the amount. If you do not owe any taxes, the money will be refunded up to $1500. An individual must have earned at least $2500 in earned income to qualify for this tax credit.
EITC – The EITC, or the Earned Income Tax Credit, is another program intended to help individuals pay their tax bill or receive a refund. The only requirement for this credit is that you must have earned an income during that tax year. For those with children, there is no qualifying age, but for those without children, you must be between 25 and 64 years old to claim this credit.
CDCTC – The CDCTC or Child and Dependent Care Tax Credit helps reimburse families for their childcare spending throughout the year. It can also be claimed by families that spend money on the care of an adult dependent. This credit can help to lower the amount of taxes you owe, but it is not refundable. If you plan to claim this credit, you will need to have records of how much you spent on the qualifying care during that tax year.
Did You Miss Credits From Past Years?
If you feel you may have missed out on credits from previous years, you can claim them this year. 2021 saw historic expansions in tax credits in response to the COVID pandemic. Not everyone who qualified for these credits, however, received them. Be sure to talk with a tax professional to ensure you have received all the tax credits owed.
Categorised in: Tax Preparation