WASHINGTON — With the nation’s tax season rapidly approaching, the Internal Revenue Service reminds taxpayers there are important steps they can take now to help “get ready” to file their 2023 federal tax return.
A little advance work now can help people have the paperwork and information ready to file their tax returns quickly and accurately. As part of this education effort, the IRS has a special page outlining items taxpayers can look into now to get ready to file their 2023 tax returns (https://www.irs.gov/individuals/get-ready-to-file-your-taxes).
When comparing tax year 2022 to 2023, there was a big adjustment to the federal income tax brackets, according to experts. For 2023, the standard deduction increased to $27,700 for married couples filing jointly, up from $25,900 in 2022. Single filers may claim $13,850 for 2023, an increase from $12,950. Enacted via the Tax Cuts and Jobs Act of 2017, the higher standard deduction is slated to sunset in 2026, along with lower tax rates
If you purchased a vehicle in 2023 or made energy improvements to your home, you could qualify for tax breaks, according to the IRS. The clean vehicle tax credit caps the break at $7,500, while eligible eco-friendly home improvements could be worth thousands more. With more complicated tax breaks, it’s critical to “have your ducks in a row” prior to meeting with a tax preparer, Jastrem said.
The good news is that the majority of tax filers typically get a refund. And the IRS usually issues them within 21 days of accepting your return. The agency notes, however, that if you are claiming an Earned Income Tax Credit, the IRS cannot by law issue the EITC-related refund before mid-February and estimates that those funds will be available for filers starting February 27.
The maximum tax credit per qualifying child is $2,000 for children under 17. For the refundable portion of the credit (or the additional child tax credit), you may receive up to $1,600 per qualifying child
Last year, from the more than 160 million returns filed, the IRS issued nearly 105 million refunds. The average refund was $3,054, according to IRS filing statistics.
IRS will start accepting 2023 tax returns on January 29. To find out how quickly you are likely to get your refund once you have submitted your return, you can use the agency’s Where’s My Refund tool.
For Montana under SB 399, taxpayers will have to use the same filing status for their state and federal returns. Most notably, that means married couples won’t be able to file separately for Montana if they file jointly on the federal return.
In addition, the state taxable income will be tied to federal taxable income – a change that means thousands of lower-income Montanans won’t have to pay any state income taxes, because of the higher federal standard deduction.
SB 399 also eliminated a number of tax deductions and credits. Many of those changes have already been implemented.
Please be aware this is a synopsis of tax info. Complete info, forms, and instructions can be found at https://app.mt.gov/myrevenue for Montana Tax filing and https://www.irs.gov/ for Federal tax filing.
Wedsworth Library has printed off State and Federal forms that can be copied. We also have most of the schedules ready to copy that might possibly be used. Unfortunately, due to the cost of everything going up, we will have to charge a small fee for any copies made. Stop on by and we will do our best to help you get that wonderful paperwork you have been looking forward to all year.