Tax Season 2023: A Deep Guide to Tax Filing this Year

The US 2023 tax season will start on Monday, January 23, 2023, when the Internal Revenue Service (IRS) will start accepting and processing returns for the 2022 tax year. Tax return submissions are already being accepted by a large number of software companies and tax professionals, who will send those returns to the IRS once the agency starts accepting tax returns on January 23.

It is anticipated that over 168 million individual tax returns will be filed, the majority of which will be done before the April 18 tax deadline. People have three more filing days this year because of the calendar.

The pandemic had a significant impact on the three tax seasons prior, so the IRS has taken additional measures for 2023 to enhance service for taxpayers. The IRS has added more than 5,000 new telephone assistors and more in-person staff to help support taxpayers as a result of the Inflation Reduction Act’s passage in August. These actions were carried out as the IRS spent months getting ready for the 2023 tax year. 

Several free services are offered by the IRS to assist individuals. Qualified individuals can also receive free basic tax return preparation through the IRS’s programs for Volunteer Income Tax Assistance and Tax Counseling for the Elderly. Additionally, individuals can seek assistance from reputable tax experts, commercial tax software, and IRS Free File, which offers free electronic filing of tax returns.

The IRS Free File

Beginning on January 13, participating providers will start accepting finished returns and holding them until they can be electronically filed with the IRS.  Before January 23, a large number of commercial tax preparation software providers and tax experts will also be accepting and preparing tax returns for submission when the IRS systems open. 

Taxpayers who made $73,000 or less in 2022 are eligible to file their taxes electronically for free using well-known software provided by commercial tax filing firms under the IRS’s Free File program, which is only accessible at IRS.gov. A component of this effort is Free File Fillable Forms, which is accessible to people of all income levels and offers free electronic forms that people can download, complete, and submit on their own at no cost.

Deadline

For the majority of taxpayers, the due date for filing 2022 tax returns or requesting an extension to file and pay the tax due is Tuesday, April 18, 2023. Washington, D.C. holidays have the same legal effect on tax deadlines for everyone as do federal holidays. Due to the weekend and the District of Columbia’s Emancipation Day holiday, which falls on Monday, April 17, the due date has been changed from April 15 to April 18. The deadline for filing for taxpayers requesting an extension is Monday, October 16, 2023.

The Most Awaited Refunds

If a taxpayer chooses direct deposit and there are no problems with their tax return, the IRS expects that they will typically receive their refund within 21 days of filing their taxes electronically. While the IRS will begin accepting returns on January 23, it won’t be able to issue refunds that include the EITC or ACTC until somewhere in the middle of February. 

Most early EITC/ACTC filers should see an updated status on the “Where’s My Refund?” website by February 18. The IRS anticipates that the majority of EITC/ACTC-related refunds will be available in taxpayer bank accounts or on debit cards by February 28 if direct deposit was chosen by taxpayers and there are no other issues with their tax return.

Last Year’s Tax Return

All paper and electronic individual tax year 2021 returns that were received by the IRS prior to November 2022 and didn’t need to be reviewed or corrected for errors have already been processed. The IRS is still completing the last of these types of tax returns. The timing of tax refunds won’t be affected by this work for filers in 2023, but the IRS is still advising people to submit error-free tax returns this filing season to avoid delays. For the most recent details on the status of tax returns received in 2022, visit the IRS Operations page.

Online Support

At IRS.gov, taxpayers can find online resources that are quick and simple to use. They are used by millions of people to assist with tax preparation and payment, obtain account information, determine their eligibility for tax credits, and find answers to tax-related questions.

Individuals can securely log in to their IRS Online Account to access personal tax account information, such as the balance, payments made, and tax records, such as adjusted gross income. 

Tax return preparers come in a variety of forms, such as enrolled agents, certified public accountants, attorneys, and those without formal education or training. Information is provided in Choosing a Tax Professional to aid people in their choice. The Directory of Federal Tax Return Preparers with Credentials and Select Qualifications can be used by taxpayers to find local preparers who currently hold professional credentials recognized by the IRS.

Many tax law-related questions can be answered using the Interactive Tax Assistant.  For instance, it can assist people in determining whether a particular form of income is taxable or if certain expenses are allowable deductions. Additionally, it provides answers to common queries like figuring out filing status, allowing people to claim dependents, and whether they need to file a tax return, as well as assisting people in determining whether changes to their life circumstances make them eligible for credits they weren’t previously eligible for.

The Department of Defense provides MilTax, a free tax resource, to the military community.  It includes software for tax preparation and electronic filing, individualized assistance from tax consultants, and up-to-date tax filing information. It is made to deal with issues like deployments, pay for training and combat, housing and tenancy laws, and multi-state filings.  A federal tax return and up to three state returns may be electronically filed for free using MilTax by qualified taxpayers.