Tax Season 2023

The 2023 tax season has started.  And whether you like to file your tax returns early or prefer to wait closer to Tax Day 2023 (i.e., April 18), there are a few things you need to know about income reporting, new tax credits, state stimulus checks, and potentially smaller tax refunds—before you file your 2022 taxes.

Tax Season 2023

First and foremost, the IRS began accepting tax returns on Monday, January 23rd. The agency says that it is expecting more than 168 million tax returns this season and that many people will file early.

If you are an early filer, be sure that you have all the information you need before you file. You are responsible for filing a complete and accurate tax return, so gather your records, and double check your taxpayer identification number and PIN.

Also worthy of note: The IRS recently added more than 5,000 new customer service staff. This increased IRS staffing stems from the Inflation Reduction Act and is part of the agency’s goal to improve service this filing season. But the IRS still says that visiting the website, IRS.gov, is the fastest way to get tax refund information, and answers to common tax questions.

The IRS also says that direct deposit is the fastest way to get your tax refund if you’re due one. 

Free File Taxes

If you earned $73,000 or less in 2022, you can file your taxes online—for free.

The IRS Free File program operates with seven providers who each have their own various eligibility rules and products. IRS Free File has been open since January 13. If you filed your taxes through the program before January 13, your Free File provider likely held onto your return until the IRS began accepting tax returns on January 23.

If you haven’t filed your taxes yet and are interested in IRS Free File, you can go to the IRS Free File site. Follow the prompts to the online lookup tool to find the right product for you.

2023 Tax Day

This year, the tax filing deadline to submit 2022 tax returns, or to submit an extension to file and pay taxes you owe for 2022, is Tuesday, April 18. (The due date is not the typical April 15 mainly because that would fall on a weekend.)

If you live in an area that was affected by natural disasters (e.g., floods, tornadoes, wildfires, etc.), you have a little more time to file because your individual and business tax returns aren’t due until May 15, 2023. That 2023 filing extension currently applies to storm victims in Alabama, California, and Georgia.

2022 “Stimulus” Payments

If, during 2022, you received a state tax refund payment, inflaiton relief check, or other 2022 special rebate or “stimulus” check from your state,  you may have been wondering whether the amount will be taxable on your federal income tax return. 

The IRS recently announced that it won’t challenge the taxability of most of the special state payments made in 21 states.  (The IRS had recently asked taxpayers who had received the special payments, to wait to file their 2022 tax returns so that the agency could decide whether the payments would be treated as taxable income.)

Not having to report most of the special state payments on your federal income tax return is good news for many taxpayers. But, if you’re unsure whether the special 2022 state payment you received is taxable, consult a professional before you file your 2022 federal return.