Tax return terrifying you? Here is what you need to know ahead of tax season

Tax season is quickly approaching, which means millions of Americans will start thinking about filing a 2023 return.

Tax season can be daunting for many people, raising questions about deadlines and deductions.

Taxpayers may be wondering how sooner or later they will be able to file a return this year, or whether there have been changes to income tax brackets.

Since last year’s tax season, the Internal Revenue Service (IRS) has made some changes to credits and deductions, so it’s important to stay up to date so you know what you can claim.

Here we answer the most pressing questions for the upcoming tax season.

When is the tax deadline this year?

Tax day is April 15th. This is the same date every year unless it falls on a weekend or holiday.

This year this date falls on Monday.

When can I file my 2023 taxes soon?

Typically, taxpayers can begin filing returns at the end of January. Last year, the IRS began accepting returns on January 23rd.

The date when people will be able to file 2023 returns has not yet been set, but it is expected to be around January 23rd or 24th.

Some experts suggest Americans wait to file their taxes until the deadline approaches because they could benefit from some last-minute tax breaks being discussed in Congress.

What are the new income tax levels?

Income tax rates increased 7 percent in 2023, reflecting 40 years of high inflation the year before.

Income taxes in the United States are progressive. This means that the more you earn, the more you end up paying as a percentage of your income.

Here are the tax brackets for 2023:

For individual applicants:

• 37 percent for income over $578,125.
• 35 percent for income over $231,250.
• 32 percent for incomes over $182,100.
• 24 percent for income over $95,375.
• 22 percent for income over $44,725.
• 12 percent for income over $11,000
• 10 percent for income below $11,000

For married couples filing a joint return:

• 37 percent for income over $693,750.
• 35 percent for income over $462,500.
• 32 percent for income over $364,200.
• 24 percent for income over $190,750.
• 22 percent for income over $89,450.
• 12 percent for income over $22,000.
• 10 percent for income below $22,000

In the 2024 tax year, income tax rates will increase again.

What is the new standard deduction this year?

The standard deduction for tax year 2023 also increased by about 7 percent. It is $13,850 for single filers and $27,700 for married and joint filers.

Taxpayers claim the standard deduction to reduce their income by a predetermined amount.

Some taxpayers choose to itemize their deductions if the total amount exceeds the standard deduction.

What is the additional standard deduction for those over 65?

For tax year 2023, Americans are 65 years of age or older or blind and qualifying. criteria are now eligible for an additional standard deduction, according to the IRS.

The additional standard deduction is $1,850 for single filers or those filing as head of household and $3,000 for married couples filing jointly if each spouse is over age 65, bringing the total to $15,700 US for single applicants and US$30,700 for married couples.

Are there any changes to itemized deductions for tax year 2023?

Itemized deductions “remain essentially the same” for the 2023 tax year, according to Charles Schwab. USA today.

The financial services company notes that these itemized deductions remain the same:

• State and local taxes. The deduction for state and local income taxes, property taxes and property taxes is limited to $10,000.

• Mortgage Interest Deduction: Americans can generally deduct interest on the first $750,000 of mortgage debt. But those who bought a home before December 16, 2017 can deduct interest on the first million dollars.

• Medical expenses: In 2023, only medical expenses that exceed 7.5 percent of adjusted gross income can be deducted.

• Charitable donations. In 2023, the annual income tax deduction limits for gifts to public charities are 30 percent of adjusted gross income for contributions of non-cash assets—if held for more than one year—and 60 percent of adjusted gross income for cash contributions.

Am I eligible for free IRS tax preparation?

Individual taxpayers in select states will be able to prepare and file their taxes this year directly with the IRS through Direct file pilot scheme.

The pilot is currently open to eligible taxpayers in 12 states—Arizona, California, Florida, Massachusetts, Nevada, New Hampshire, New York, South Dakota, Tennessee, Texas, Washington and Wyoming.

The agency said qualified Americans must also report certain types of income, credits and deductions.

“The Direct File Pilot will initially be open only to a small group of taxpayers, then we will open the Direct File Pilot to more people later in the tax filing season for filing 2023 tax returns,” the IRS website states.

What are the IRA and 401(K) contribution limits?

Employees enrolled in company retirement plans could contribute $22,500 to their 401(K) plan for the 2023 tax year, and employees with an individual retirement account could contribute up to $6,500.

People age 50 and older have higher limits—and the limits will rise to $23,000 and $7,000 for tax year 2024.

What is the income limit for child tax credits?

The Child Tax Credit pays up to $2,000 for each qualifying child under age 17. Up to $1,600 of payments are refundable on your 2023 taxes.

About 14 states also offer their own child tax credits, according to National Conference of State Legislatures.

The credit is reduced if your modified adjusted gross income exceeds $200,000, or $400,000 for a married couple filing a joint return.

A bipartisan group of lawmakers is reportedly working to expand the child tax credit before it’s time to file taxes this season. Business Insider.

How can I estimate my tax refund and how quickly can I expect my refund?

Company tax returns TurboTax And H&R block We offer tax refund appraisers as well as non-profit organizations AARP.

Most refunds will be issued within 21 calendar days, according to the IRS. Returning paper checks may take longer—four weeks or more.