Again it’s that time of the year to pay for the tax you owed in 2022 as the tax season 2023 is here. With the official announcement from the IRS, the tax season for 2023 has started. You would be interested to know about the tax rates, deductions, credits, and more before filing your return. Well, you`re in the right place, then.
As a US citizen or resident, you must file a tax return under certain circumstances. Here in this article, we describe all the tax-related things that would help you file your tax return correctly. In the different sections, you will learn everything you need to know to prepare your tax this year.
So, let’s dive in.
7 Things To Know About Tax Season 2023
Here in this section, we summarize the crucial things about the tax season in 7 points. So, keep reading to learn more.
Tax Filing Deadline 2023
First thing first, when is tax season 2023? The answer is it is from January 23 to April 18, 2023. But, for the people affected by natural disasters like floods, tornadoes, or wildfires, the tax filing deadline 2023 is May 15.
If you can’t file your return and make payment on the due date, you can request an extension. The extension deadline this year is October 16, 2023.
Increased Standard Deduction
The standard deduction is the portion of your income that is not subject to tax. Most taxpayers choose the standard deduction instead of the itemized deduction, where the deductions are calculated individually.
The standard deduction varies depending on age, filing status, and other criteria. The increased standard deduction for tax season 2023 (the tax year 2022) and tax season 2024 is like the following.
| Filing Status | Tax Year 2021 | Tax Year 2022 | Tax Year 2023 |
| Single | $12,550 | $12,950 | $13,850 |
| Married Filing Jointly | $25,100 | $2,5900 | $27,700 |
| Married Filing Separately | $12,550 | $12,950 | $13,850 |
| Head of Household | $18,800 | $19,400 | $20,800 |
Adjusted Tax Rates And Brackets
The tax rate is the percentage of your income you pay as taxes, while the tax bracket is your income range. For example, if you’re single and your taxable income is $41,800, you’re in the 22% tax bracket. It infers that part of your income is taxed at 10%, another part at 12 %, and the rest is taxed at 22%.
Let’s know the adjusted tax rates and tax brackets for 2022 (tax season for 2023).
Tax Rates and Brackets for The Tax Year 2022
| 2022 Marginal Tax Rate | Single Tax Rate | Married Filing Jointly Bracket | Head of Household Tax Bracket | Married Filing Separately Bracket |
| 10% | $0–10,275 | $0-20,550 | $0-14,650 | $0-10,275 |
| 12% | $10,276-41,775 | $20,551-83,550 | $14,651-55,900 | $10,276-41,775 |
| 22% | $41,776-89,075 | $83,551-178,150 | $55,901-$89,050 | $41,776-89,075 |
| 24% | $89,076–170,050 | $178,151-340,100 | $89,051-170,050 | $89,076-170,050 |
| 32% | $170,051-215,950 | $340,101-431,900 | $170,051-215,950 | $170,051-215,950 |
| 35% | $215,951-539,900 | $431,901-647,850 | $215,951-539,900 | $215,951-323,925 |
| 37% | Over $539,900 | Over $647,850 | Over $539,900 | Over $323,925 |
File Your Tax And Get Help For Free
The IRS offers a Free File Program this time, which enables you to prepare and file taxes for free. If your annual adjusted gross income(AGI) is $73,000 or less, this service is available.
Moreover, you can get free tax help from your local Volunteer Income Tax Assistance Center. People with annual taxable income of $60,000 or less, disabilities, or limited English proficiency are eligible for this service.
Tax Deductions And Credits To Consider
Tax deduction refers to the reduction of taxable income. And tax credit means the amount of money that taxpayers can subtract directly from their tax bill or the taxes they owe. Here are some tax deductions and credits you must consider before filing the return.
- Charitable Deductions: The amount of money you could deduct for charitable donations in 2021 is changed in the tax season 2023. But you can still deduct charitable contributions made in 2022 if you choose an itemized deduction. The limit here is 60% of your adjusted gross income(AGI).
- Business Deductions: As self-employed, you can claim several deductions, including travel expenses and home office deductions. If you use a portion of your home for business purposes, you can only claim the home office deduction.
- Earned Income Tax Credit (EITC): The US government offers this credit to help out low and middle-income households. To be eligible for this refundable credit in the tax season 2023, you must have an AGI below $16,480 as a single filer with no children.
- Child Tax Credit: If you have kids, this credit enables you to credit up to $2,000 per dependent child under 17. But, your income must not exceed $4000,000 as a married filing jointly and $2000,000 for other filing statuses. This one is partially refundable, also.
Other tax credits you may consider are savers credit, child and dependent credit, education credit, and electric vehicle credit.
1099K Changes Delayed Until 2024 Tax Season
A 1099-K form is a form that is required to be filled out for those who receive third-party business transactions. The IRS was about to make considerable changes to the 1099-K form for this tax season. But those changes are delayed until the 2024 tax season.
You’ll receive a 1099-K form if you accept more than $600 over a third-party network(e.g., Venmo, PayPal, Stripe, etc.) in the tax year 2023.
Smaller Tax Refunds For The 2023 Tax Season
The IRS predicts that taxpayers will get lower tax refunds in the 2023 tax filing season due to some changes enacted. For example, the child tax credit returned $2,000 from $3,600 per child, which was raised in the tax year 2021.
Let’s Have A Quick Recap
It’s time to recap the whole thing about taxation and the tax season 2023. Let’s answer some frequently asked questions as well.
When Is Tax Season 2023?
The Internal Revenue Service(IRS) announced the tax season of 2023 starting from January 23, 2023. And the tax filing deadline 2023 is April 18, 2023. More specifically, the answer to the question “when is tax season 2023?” is from January 23 to October 16, 2023, with an extension.
When Can You File 2023 Taxes?
You can file the tax you owed for 2022 from January 23 to April 18. For extension requests, the due date is October 16, 2023.
What Will Be The Final Day Of The 2023-2024 Year For Income Tax?
Usually, the final day of a tax season to file tax holds at April 15. But, in the 2023 tax filing season, the final day of the tax day is April 18 due to a holiday on April 15, 2023.
What Is The Minimum Income To File Taxes?
In the 2023 tax filing season, the minimum income to file taxes for single filing status is $12,950. Likewise, the minimum income to file taxes will differ from other filing statuses like married and household owners.
What Is The 2023 Tax Bracket?
For the tax season 2023 or tax year 2022, the tax budget has been adjusted due to inflation. Check out the table above, which details the tax bracket and rates for 2023.
Are Tax Rates Changing In 2023?
The IRS adjusts the tax rates almost yearly to cope with the inflation rate. In 2023 the tax rates are going to be changed by the IRS. Stay tuned to the IRS official website to learn the changed rate with time.
The Bottom Line
As you pay the tax from your hard-earned income, you must be careful about filing the return and paying the tax bill. Hopefully, you found this article helpful with all the valuable info so that you can prepare your tax for the tax season 2023 confidently.
