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Between the start of a new year and the first day of spring, it’s common to notice a kind of clenching just behind the pit of your gut. Gradually, as the Christmas decorations come down and Valentine’s Day passes, what started as a barely noticeable discomfort transforms into a formless worry. Day after day, you feel a deadline approaching. And even though you could take action at any minute and put your anxiety to bed, like 80 million Americans on average, you wait until the last minute to file your taxes.
If this cycle sounds familiar to you, know that you’re not alone. But in 2023, maybe it’s time to break out of the status quo and take a more proactive approach to the financial filing frenzy.
The Leadingham Rodgers Guide to Tax Season 2023
At Leadingham Rodgers in Montgomery, AL, we’ve helped countless private citizens and businesses file their tax returns in a timely and advantageous manner. Here are just a few tips, tricks, and changes to the tax code to consider when filing in 2023!
Before we get into the weeds on tax code changes and deductions, let’s cover the basics of the 2023 tax season.
Tax Filing Deadline: April 18, 2023
Extension Deadline: October 16, 2023
The IRS’s Free File program has been available since January 13, so if you have the time, energy, and will to submit yourself, make sure you choose direct deposit to speed up your return. Now that we’ve got that out of the way, let’s talk a little shop.
Important Tax Filing Changes
A few important things have changed since you filed your 2021 tax return back in 2022. No matter who you are (private citizen, business owner), these changes could be applicable to you in a big way.
Standard Deduction Increase
The IRS has raised standard deductions for single and joint filers to account for rapid (and drastic) inflation throughout the 2022 tax year.
New Single Filer Standard Deduction: $12,950
New Joint Filers Standard Deduction: $25,900
For single filers, that’s an increase of $400 over the standard deduction in 2021. For married couples, the standard deduction has jumped by $800. While those numbers may seem small, especially after a 9.1% inflation peak during the 2022 tax year, they could pay dividends in your return.
Tax Bracket Changes
“Inflation” is the name of the IRS shuffling game this tax season, and few aspects of filing your tax return have gone untouched by record-high rate increases throughout the 2022 tax year. Across the board, the IRS has raised the upper limits for tax brackets by 7% to account for wage increases in keeping with inflation.
Deductions & Credits
There’s a special kind of delight in saving money, especially during tax season and especially when you expected to shell out in the first place. Thankfully, there’s a long list of deductions and credits that you may apply for, depending on your circumstances.
Before filing, it may be wise to speak with a CPA to determine your eligibility for the following deductions and credits.
- Earned Income Tax Credit (EITC)
- Child Tax Credit (CTC)
- Child & Dependent Care Credit
- Education Credits
- Business Deductions
- Medical Deductions
- Charitable Deductions
By far, the biggest of these credits is the EITC. At Leadingham Rodgers, we’ve written about the EITC extensively, but to learn about the other deductions and credits, it may be best to get the information you need from the horse’s mouth by visiting the IRS here.
General Tax Filing Tips & Tricks
If you’re reading this, then you’re already taking a helpful, proactive step toward the timely filing of your 2022 tax returns. But for further encouragement in these trying times, Leadingham Rodgers provides a small list of general tips and tricks for filing your 2022 tax return.
- Start Now – There’s no such thing as “too soon,” really
- Accuracy Matters – If you’re struggling to form a complete picture, contact the pros
- Include Your Gig Income – Don’t forget your 1099s, especially if a freelance or gig employer paid you more than $600 in total throughout 2022
- Investigate Deductions & Credits – A trained CPA can help you save the most
- When in Doubt, Extend – If there’s even a small chance that you won’t make the April 18, 2023 deadline, file for an extension now
- Ask for Help – As with complex home repairs or mechanical issues with your car, asking for help is a virtue, not a failure
Conquer the 2023 Tax Season with Leadingham Rodgers
Like fingerprints or snowflakes, no two tax returns are the same. Every financial picture is unique, and if you’re not careful, you can easily overlook valuable deductions and credits. Trust the professionals at Leadingham Rodgers in Montgomery, AL, to ensure the smoothest, most lucrative 2022 tax return.
Our trained CPAs can help you uncover options you never knew you had while navigating the ever-changing seas of tax code law and shifting tax brackets. Give yourself or your business the best chance at filing with grace this tax season by calling 334-721-2548 today or contacting us online. Together we can put tax season behind us and get back to making—rather than reporting—money.
Trust the Tax Pros & Sleep Easier Tonight, Tomorrow, & For the Rest of 2023!
Tax season doesn’t have to feel like one long clenched fist. As an annual part of adult life, filing your taxes is easier with a little knowledge, a little research, and a little help from a trusted tax professional. For businesses and private citizens throughout Montgomery, AL, and beyond, there’s Leadingham Rodgers. To learn how we can help you or your business save the most this tax season, call us today at 334-721-2548 or contact us online.