Your favorite uncle, Sam – also known as the IRS (IRS) – made changes for the 2023 tax year. all year. These are the taxes that will be provided in 2024.
We are pleased to announce that there is a bright aspect of inflation that we all witnessed in 2023. This has led to taxes related to taxes that will benefit some taxpayers. On the other hand, if you have a side job in 2023, the American Tax Authority will finally impose new requirements to report this income.
Our guide provides the details of these changes and other basic things that must be remembered when determining how to perform taxes effectively and efficiently for the 2023 tax year.
Understand the requirements for submitting the tax declaration
The American Tax Authority provided more than 60 modifications related to inflation For the tax year 2023. Here are two of these factors that will affect almost all people who provide taxes in 2024.
Increase income tax slices
When preparing your taxes, you can choose the deposit status. The most common types are individual and married individual deposit. In less common cases, you can choose a separate married registration or the head of the family.
Your tax rate is the percentage of your income that you pay as taxes. The American Tax Authority uses tax arches to determine your tax rate. While the Tax Authority did not amend the tax rates between 2022 and 2023, it increased the tax segments by 7 % in all areas to take into account inflation. To help clarify what this means, we will compare a new The tax chip of 2023 (see the graph below) to the corresponding chip of 2022.
Below are the 2023 tax rates for unmarried and married taxpayers jointly:
For the 2023 tax year, a tax is imposed on individual bloggers who earn between $ 44,726 and 95,375 dollars at a rate of 22 %. In 2022, the tax chip corresponding to the tax rate of 22 % was $ 41.776 to 89.075 dollars.
Make accounts and you will see a 7 % change in the minimum and higher for this range between 2022 and 2023. The US Tax Authority made this change to each tax segment of the tax year 2023.
This may help some taxpayers whose income has not increased by more than 7% between 2022 and 2023, by reducing the tax rate on some of their income at least.
It does not mean just that you are in a specific tax chip that you pay the tax rate opposite all your tax income. For example, the couple is paying $ 89,450 in 2023 joint income 10% on the first $ 22,000 and 12% on the remaining amount of $ 67,450.
In 2022, a tax would be imposed on nearly $ 5900 from the income of these two couples by 22% when the tax chip was at this rate. 83,551 dollars to 178,150 dollars. These virtual spouses – with equal to all other factors – must pay a lower income tax in 2023 thanks to the changes.
The standard opponent rises again
the Standard discount It is an amount in dollars determined by the American Tax Authority Reduce Your tax income.
Good news – as in most years, the standard opponent will rise again in 2023:
- For individual taxpayers, it is also 13,850 dollars900 dollars over 2022.
- For the taxpayer who jointly married, is 27,700 dollars, an increase of 1,800 dollars from 2022.
While the standard deduction makes providing your taxes easier, some taxpayers benefit by detailing their cuts, especially if their total detailed cuts are greater than their standard opponent. According to the American Tax Authority, taxpayers who have unpaid medical expenses may benefit, charitable contributions and other qualified expenses through detail. In rare cases, the Tax Authority requires detailing taxpayers.
Some people may not have to provide taxes for the tax year 2023. The law does not require you to submit a tax declaration if you make less than a certain amount of money, which varies according to age and the application. Tax Authority Provide a tool To help determine your options. Even if you do not have to submit a file, you may want it anyway. If you pay some income tax, all of it may be recovered. You can also qualify for credit, which often aims to help low -income families (for example, Tax credit on acquired income), Which can lead to money recovery.
How to collect and organize the necessary documents
It is like preparing all your ingredients before preparing the meal, but not as much as fun. To do things quickly and In the right way, prepare the following information before paying taxes:
- Your social security numbers, your wife, and anyone who depends on them, if possible
- Tax Decisions for the past year – federal and state
- All your doctrine W-2 models If you are paid as an employee
- All your doctrine 1099 models If you are paid, for example, as an independent contractor
- Models that you received from banking and investment accounts that show in detail the acquired benefits, profits, capital losses and retirement account contributions
- If you run your own business, set up a list of work expenses to see if you can oppose it
- Mortgage data and real estate taxes
- Charitable contributions
- Unpaid medical expenses
- Education expenses
A major change in how to impose taxes in 2023 and beyond – is the frightening change Form 1099-k. The Tax Authority now requires payment networks of external parties, such as Venmo and PayPal, informing the agency – and copying – number 1099 -k if you earn more than $ 600 of total payments. This does not count the money of the family and friends, and you grow lunch or Christmas gifts.
How to choose the correct way to provide taxes
Maybe you think – This is much. It can be. However, today and the era of doing everything yourself, it is increasingly easier to do tax on your own.
You can prepare and provide your taxes online using programs from companies such as companies Turbotax and H & R mass. If you have a simple return – with no models or time schedules to present, unlike the IRS 1040 model – you may also be able to apply for free.
These programs help you to offer step -by -step taxes. They ask questions to determine the registration status. They also ask about your work, income and investments to help increase discounts and credit to the maximum and monitor errors before submitting your approval.
You can also find Free online tax program for a third party via IRS. However, the eligibility criteria, including the total rate of $ 73,000 or less, should be fulfilled. If your income exceeds this limit, you may choose Uncle Sam Free packaging models option. However, this is a pure DIY, as it does not provide guidelines. Tax Authority Plans To experience a program in 2024 it would Allow the taxpayers to submit their requests directly to the agency for free Regardless of income.
How to submit and submit your tax declaration
For those who expect money recovery, almost all cases, you should submit the application electronically as the American Tax Authority says this is the easiest and fastest way to submit your taxes – Usually less than three weeks. If you choose to apply via mail, the American Tax Authority warns that the return treatment may take six months or more.
With most third -party software, file saving phase and processing are free of trouble. the Tax Authority You will be asked to create a PIN to facilitate your electronic signature and help prevent fraud. You can track the progress made on your e -mail, through the preparation program or Tax Authority website.
Common mistakes in providing tax declarations that must be avoided
Attention to details can help you avoid the most common problems – and the basic – mistakes The American Tax Authority says that people are making, such as:
- Not to wait to receive all your tax models, such as W2S and 1099 S, before submitting them
- Getting social security numbers wrong
- Not spelling the names in the way they are written on social security cards
- Choose the wrong registration status
- Mathematics bad
- Inaccurate bank account numbers
Avoid these errors to reduce the delay of treatment, and worse, receive an unexpected notice from the American Tax Authority after weeks, months, or even years of submitting the application.
How to deal with tax recovers or owed assets
If you will recover your money – choose direct deposit, write your bank account and steering numbers accurately and then submit the file electronically. The tax department can process the taxes recovered from taxes Three weeks Or less with direct deposit.
If you owe money, in favor of taxes It provides you with many payment options. You can use your bank account, credit card or discount, digital portfolio, checks, financial transfers, and at the time of serving, electronically transfer money. You can pay in cash with the American Tax Authority’s retail partner or the American Tax Authority Service Center.
If you do not have money to pay the Tax Authority immediately, you can order Payment plan. The American Tax Authority offers short -term payment plans, which last for 180 days or less, and long -term installments. You may bear the preparation fees, penalties and benefits that accumulate when paying your debts.
Request for professional assistance to provide taxes
If you have a very complex return or are not comfortable for the complications related to how to provide taxes, you can use a professional such as CPA, a registered agent or registered tax preparatory.
The professional will be able to send a list of documents to show that he will need to be submitted. You can send or leave your information, and the professional will do the rest. They will prepare and provide your return, prepare the recovered amount or help you make payment arrangements, and of course increase your discounts and credits to the maximum with help ensure that you get everything well. If you only have some questions, a tax accountant, the prepared or even a lawyer can answer them, but probably for a fee.
Ultimately, the taxpayer (this is you!) That signs the acknowledgment responsible for the accuracy of the information contained in .
Finally, on Monday, April 15, 2024, set your calendar. this Tax day – The deadline set by the American Tax Authority to submit your approval for 2023. You can submit a file extensionWhich saves you time to provide your taxes, but if you owe taxes, you still have to pay them by the tax day to avoid potential fines and additional benefits.