Tax Time Guide: Things to consider when filing a 2022 tax return Internal Revenue Service

2024 tax filing season set for January 29

The irs said monday that it is opening the tax filing season on january 29, which means that taxpayers will have between that date and april 15 to file their returns. People should report all their taxable income and wait to file until they receive all income related documents. This is especially important for people who may receive various Forms 1099 from banks or other payers reporting unemployment compensation, dividends, pensions, annuities or retirement plan distributions.

For example, most software companies accept electronic submissions and then hold them until the IRS is ready to begin processing later this month. IRS Free File will also be available on IRS.gov starting Jan. 12 in advance of the filing season opening. The IRS Direct File pilot will be rolled out in phases as final testing is completed and is expected to be widely available in mid-March to eligible taxpayers in the participating states. Although the IRS will not officially begin accepting and processing tax returns until Jan. 29, people do not need to wait until then to work on their taxes if they’re using software companies or tax professionals. The IRS strongly encourages people to file their tax returns electronically to minimize errors and for faster refunds – as well having all the information they need to file an accurate return to avoid delays.

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But try to pay any tax that you might owe by April 15, or else you will get hit with extra tax penalties. Families who received advance payments will need to compare the advance Child Tax Credit payments that they received in 2021 with the amount of the Child Tax Credit that they can properly claim on their 2021 tax return. This is the second in a series of reminders to help taxpayers get ready for the upcoming tax filing season. A special page, updated and available on IRS.gov, outlines steps taxpayers can take now to make tax filing easier in 2022. Electronically filing your tax return and choosing direct deposit is the fastest way to get your refund. For the issuance of paper checks, the IRS estimates a four- to six-week waiting period.

The IRS’s Free File program allows taxpayers who made $73,000 or less in 2021 to file their taxes electronically for free using software provided by commercial tax filing companies. For most taxpayers, the deadline to file their personal federal tax return, pay any tax owed, or request an extension to file is Monday, April 15, 2024. Taxpayers living in Maine or Massachusetts have until April 17, 2024, due to the Patriot’s Day and Emancipation Day holidays. If a taxpayer resides in a federally declared disaster area, they also may have additional time to file. The deadline for most taxpayers to file their personal federal tax return, pay any tax owed, or request an extension is April 15, 2024.

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But armed with information about these changes, you can take steps toward maximizing your tax situation now and in the years to come. The states participating either have no income tax or have the capability to develop a state filing solution, according to the IRS. 2024 might be the time to start thinking about estate taxes and creating a gifting plan. Generally, you might want to avoid taking a lump-sum distribution as it could significantly increase taxable income. As long as the account is empty by year 10, you have some flexibility with the RMD amount.

  • The first, for creating an energy efficient home, allows for a tax credit up to 30% of the cost for improved doors, windows, water heaters, and energy audits up to an annual limit of $1,200 versus a $500 lifetime credit previously.
  • But try to pay any tax that you might owe by April 15, or else you will get hit with extra tax penalties.
  • Many sections of the TCJA sunset at the end of 2025, but before the end of the year Congress will need to resolve uncertainties about expiring provisions.
  • Taxpayers living in Maine or Massachusetts have until April 17, 2024, due to the Patriot’s Day and Emancipation Day holidays.
  • But before you click “file,” make sure you’re not overlooking key documents.
  • For the issuance of paper checks, the IRS estimates a four- to six-week waiting period.

The gift tax exclusion for 2024 increased to $18,000 from $17,000 in 2023. That means you can give up to $18,000 per donor to as many people as you like each year without affecting your lifetime exemption. If you’re married and elect to split gifts, each person in the couple can gift this amount without the gift being considered taxable. The original Secure Act, passed in 2019, eliminated the so-called “stretch IRA” in favor of a 10-year period before IRAs must be tax season fully distributed, with RMDs potentially being required throughout this period. It also tacked on many other potentially confusing new rules for inherited accounts, but delayed penalties for the failure to take RMDs for tax years 2020 through 2023. Previously, a younger beneficiary of an IRA was able to lengthen the time of an RMD from the deceased or original owner’s life expectancy to their own, allowing potentially for many more years of tax-deferred growth.