Tax season 2023 is here. The IRS has announced that they will begin accepting individual tax returns on January 23, 2023. They have also set the deadline to file your 2022 tax returns for April 18, 2023. With millions of Americans expected to file income tax returns, the IRS have also increased their staff significantly. They have hired additional customer support staff and reviewers to provide improved services to the public.
Throughout the month of January, employers and business owners are quite busy preparing information returns such as Forms W-2 and various 1099’s. Although some taxpayers tend to rush off to their tax professional with their December pay-stubs, it is advisable to wait for the actual Form W-2. Oftentimes, payroll departments make necessary adjustments at year-end. For this reason it is wise to wait.
Filing incomplete tax returns can lead to processing delays that can create unnecessary anxiety. It can also cause:
- Your tax return to be rejected
- An over-payment or underpayment of your tax refund
- You may have to amend the return to add documents received after your file.
- It can trigger an IRS audit in the future
If you earned income from self-employment, you want to be certain that you prepare your expense report to determine your net income (income minus expenses) Also,If you use your vehicle for both personal and business travels, be sure to have your mileage log ready. In order to claim that deduction, you will need to determine the total business miles reimbursable.
Is It Taxable or Not?
Sometimes you may have doubts as to whether or not to report something. As a rule of thumb, consider most income to be taxable. For example, if you received interest income above $10 from your bank or financial institution, you should report. Also, unemployment income is reportable so be sure to wait for your Form 1099-G. Digital assets and gig economy income is also reportable.
Lastly, make plans to e-file your returns. Filing electronically is the fastest way to submit your tax returns and if you are due a refund, direct deposit is strongly advised. Paper filing can also cause unnecessary delays. Refunds can be received within 21 days when filed electronically so taxpayers are strongly encouraged to do so. You can also check on the status of your refund online. (https://www.irs.gov/refunds)
For common tax questions, you may want to ask your tax professional or visit the IRS’s website (www.irs.gov)
SLS Accounting & Business Consulting Services is ready to assist you with filing your tax returns. Our practice operates fully remote to serve you better. We also offer “pay by refund” services for your convenience and we are an authorized e-file provider.
Visit our website and schedule your appointment early!