It’s January, and that means tax season has arrived! This might make some people anxious and others excited. Either way, it means it’s time to start gathering all that paperwork that you’ve been saving for just this occasion. Before you get ready to prepare your taxes or have them prepared, here are three things to know…
Here are the deadlines: The deadline for filing and paying in 2023 is April 18. If you’re requesting an extension, then your filing deadline will be October 16. No matter which deadline will apply to you, make sure you have paid your taxes or estimated taxes by April 18.
Standard deductions have increased: For 2022 taxes, the standard deduction has increased to $12,950 for single filers and $25,900 for married couples who are filing jointly. And for 2023, those deductions will increase again to $13,850 and $27,700 respectively.
Don’t worry about a smaller refund: You might be bummed if you’re only getting a small or no refund. But it shouldn’t get you down. That just means that you gave the government less of your money in 2022 for them to return to you in 2023. Lending money to the government shouldn’t be your goal.