Your Tax Time Guide
With tax season quickly approaching, it’s important that taxpayers start preparing to submit their returns and make any payments that they owe. To help, we’ve included a few things to keep in mind this spring when you file your 2023 taxes.
Tips for Filing an Accurate Return
The deadline for filing income returns this year is April 15th. To ensure that there are no problems with their returns, taxpayers are being encouraged to wait until they have compiled or received all of their necessary tax documents, including wage statements and other income records. Besides making the process of preparing a correct tax return easier, having these records on hand can also help taxpayers identify any deductions or credits that they may have missed.
Important Changes to Credits and Deductions
It’s also important for taxpayers to remember that a number of changes were made to some valuable credits and deductions for tax year 2023. For instance, the standard deduction amount increased for all filers last year. The new amounts are as follows:
- $13,850 for taxpayers who are single or married and filing separately;
- $20,800 for heads of households; and
- $27,700 for taxpayers who are married and filing jointly or who fall under the category of a qualifying surviving spouse.
Taxpayers with children should also know that the additional child tax credit amount was also increased for 2023 to $1,600 for each eligible child. Those attempting to claim the Child Tax Credit (CTC) should also be aware that the increased age allowance for qualifying children has expired, so to qualify for this credit in 2023, a child must be under the age of 17 years old. Finally, the maximum amount of the Clean Vehicle Credit has changed, with qualifying taxpayers now eligible for up to $7,500 in credits if they satisfy modified adjusted gross income (AGI) requirements.
The 1099-K Reporting Requirements Remain the Same for 2023
Although the IRS was planning to implement a new reporting threshold of $600 for tax year 2023 for those filling out 1099-K forms, it recently announced a delay. As a result, the previous reporting thresholds will remain in place for tax year 2023. These forms are required for taxpayers who take direct payments by credit or debit card for the sale of goods or services, regardless of how many payments they received or how much those payments added up to. However, even taxpayers who don’t receive a 1099-K form, are still required to report the income on their tax returns.
Call for Help Preparing Your 2023 Tax Return
If you are preparing to file your 2023 tax return and have questions about your rights and obligations, please call experienced CPA, former FBI Special Agent, and skilled Florida and nationwide tax return preparation lawyer Ronald Cutler, P.A. for help. Call our office at 386-490-9949 to set up a free, one-on-one consultation today. A member of our legal team is standing by and prepared to get started on your case right away.
Sources:
irs.gov/newsroom/tax-time-guide-2024-what-to-know-before-completing-a-tax-return
irs.gov/credits-deductions/credits-for-new-clean-vehicles-purchased-in-2023-or-after
