Deal Finder: Tips for the 2023 Tax Season
By LaTINA EMERSON, The Weekly Deal Finder
Tax season has arrived, and the countdown has started for taxpayers to file their federal and state income taxes by the deadline.
It’s important for taxpayers to be informed of the latest tax information and seek the assistance of experienced tax preparers if they choose to get help with filing their tax returns. This will prevent tax issues and costly problems with the Internal Revenue Service (IRS) later on.
To help readers file their taxes successfully, Chuck Johnson, a certified public accountant with offices at 560 Newnan Crossing Bypass, Suite 125, in Newnan, offers some tax tips for the 2023 tax season:
Q: What are the biggest changes that taxpayers can expect for the 2023 tax season?
A: Not very many, if any, big changes. Tax rates were changed for inflation. The standard deduction for all filers was increased. The Child Tax Credit was reduced for 2022.
Q: Is there anything else that taxpayers need to know about the 2023 tax season?
A: File early, file electronically. If you are getting a refund, choose direct deposit versus getting a check. Much quicker and much safer.
Q: When does tax season end?
A: Tuesday, April 18th
Q: Are there new income tax brackets and standard deductions for the 2023 tax year?
A: Tax brackets changed for inflation. The standard deduction for single filers is $12,950, married filers is $25,900, head of household filers is $19,400 and married filing separate filers is $12,950.
Q: Do these changes apply to tax returns filed in 2023 or 2024?
A: These changes are for the 2022 tax returns. These will adjust again next year.
Q: Are there now higher contribution limits for retirement accounts?
A: In 2022, the IRA max is $6,000 and $7,000 if 50 or over. In 2023, the IRA max is $6,500 and $7,500 if 50 and over. The 401(k) max in 2022 was $20,500, and if 50 and over the max was $27,000. In 2023, the 401(k) max is $22,500, and the 50 and over max is $30,000.
Q: Are there mileage rate and FSA contribution limit increases for the 2023 tax year?
A: The 2023 mileage rate has increased to 65.5 cents per mile. The maximum HSA contribution amounts for 2023 are $3,650 for self-only coverage and $7,300 for family coverage.
Q: Do you have any additional tax tips or advice for readers?
A: The main tip is file as soon as you have all of your tax documents, e-file your return, and if you are due a refund, choose direct deposit for that refund.
