Filing taxes can be a daunting task for many people, but it’s an essential responsibility that shouldn’t be taken lightly. In 2023, the tax filing deadline for most taxpayers is April 18, which is three days later than usual due to April 15 falling on a Saturday and the following Monday being a federal holiday. However, it’s important to note that some states may have different deadlines, so it’s best to check with your state tax agency before filing your return.
Here are some things you should know or do before filing your taxes in 2023:
Unemployment Benefits
If you received unemployment benefits in 2022, you may have to pay taxes on them. The IRS considers unemployment benefits as taxable income, unless you opted to have taxes withheld from your payments. You should receive a Form 1099-G from your state showing the amount of benefits you received and any taxes withheld. To calculate the amount of taxes you owe on your unemployment benefits, you can use the IRS tax withholding estimator.
Stimulus Payments
If you received stimulus payments in 2022, you do not have to pay taxes on them or report them as income. However, if you did not receive the full amount of stimulus payments that you were eligible for, you may be able to claim the Recovery Rebate Credit on your tax return. This credit will reduce your tax liability or increase your refund. To determine if you’re eligible for the credit, use the IRS Recovery Rebate Credit Worksheet.
Home Office Expenses
If you worked from home in 2022 due to the pandemic, you may be able to deduct some of your home office expenses. However, this deduction is only available if you are self-employed or an independent contractor. If you are an employee, you cannot claim this deduction unless your employer required you to work from home for their convenience and did not reimburse you for your expenses. The IRS provides detailed information on the home office deduction on its website.
Charitable Contributions
If you donated money or goods to a qualified charity in 2022, you may be able to deduct your contributions from your taxable income. However, you must itemize your deductions on Schedule A to claim this deduction. You also need to have a receipt or other proof of your donation. The IRS provides guidelines for deducting charitable contributions on its website.
Extensions
If you need more time to file your tax return, you can request an extension by filing Form 4868 by April 18, 2023. This will give you an extra six months to file your return, until October 16, 2023. However, this does not extend the time to pay any taxes that you owe. You should pay as much as you can by the original deadline to avoid penalties and interest. The IRS provides more information on requesting an extension on its website.
Resources and Tools
There are many resources and tools available to help you prepare and file your taxes. Online tax software and apps can make the process easier, faster, and more secure than mailing a paper return. The IRS also provides free help from IRS-certified volunteers through the Volunteer Income Tax Assistance (VITA) or Tax Counseling for the Elderly (TCE) programs. You can find a location near you by visiting irs.gov or calling 800-906-9887.
Filing taxes can be a complex process, but it’s important to do it correctly and on time. By following the tips outlined above and utilizing the resources available to you, you can make the process easier and more manageable.
