The start of a new year has everyone scrambling to prepare for the 2023 tax season. You can get a head start on the tax season by reading the following sections. We’ll outline important changes to filing 2023 taxes and vital updates you must be aware of. Keep reading for more details!
This is the first day that you can file 2023 taxes. The IRS will not process submissions until a later date.
This is the final day you can pay estimated quarterly taxes for 2022.
The IRS free file is live with submission acceptance and processing for electronic returns for the 2023 tax season. The IRS recommends using electronic filing for faster returns. Paper returns will start processing in February.
All employees should have a W-2 from their employers by February 1. Contractors should also have received 1099s by this date. If you have not received these documents by mail or electronically on this date, you need to contact the company’s HR department or the company you contracted for.
Some people also receive 1099s for dividends, interest, and retirement plan distributions. This date is the deadline for those, too.
Filers who claimed ACTC or EITC credits for the 2023 tax season can expect their refunds to be released. Refunds will start to be sent and are expected to hit bank accounts within 8-10 days. This is due to the PATH Act and the requirement that the IRS holds refunds for these credits until this date.
People filing S Corporation or partnership tax returns must complete them by this date.
This is the last day you can file 2023 taxes. The normal filing date, April 15, falls on a weekend date. April 18, 2023, is the last day you can request an extension. If you are making contributions to an HRA, traditional or Roth IRA, or SEP-IRAs, today is the last day to do so.
Taxpayers who have over $10,000 in signature authority for foreign bank accounts must file the appropriate documents by this date.
US citizens and resident aliens living abroad must file 2023 taxes by this date. Or they can file for an extension until October.
Approved extensions will be due October 18, 2023. You must file and get approval for an extension before the April 18 due date.
Gathering the necessary information to file 2023 taxes can seem overwhelming. But it doesn’t have to be if you follow these tips:
There have been quite a few changes to the tax law for the 2023 tax season. Read more about each below:
The standard deduction has changed for the 2023 tax season due to cost of living adjustments. The following are the new deduction amounts:
The mileage rates are divided into two time frames, January to June 2022 and July to December 2022. The rates are as follows:
The rate for charitable mileage remains 14 cents per mile.
401K and IRA contribution amounts also increased for the 2023 tax season. The new amounts are:
The child tax credit is reduced for the 2023 tax season. It is going back to the pre-2021 rate of $2,000 per child under 17 years of age. The maximum refundable portion of this credit is $1,500.
Social security payback for those under the full retirement age is $19,560. The cost of living for social security benefits increased by 5.9%.
Dependent care benefits are also reduced for the 2023 tax season. It is $3,000 per qualifying dependent and is non-refundable. It is based on adjusted gross income and falls between 20% and 35%.
To qualify for the earned income tax credit as a single taxpayer, they must not be a dependent or have any dependents. They must now be between the ages of 25 and 65 (previously, it was 19-65) with income below $16,480.
The tax law no longer forgives the amount of the premium credit for health insurance that must be repaid. You must make adjustments to your income throughout the year to reflect the correct premium credit, so you do not have to repay a portion of it.
The IRS is incredibly busy during tax season. In 2021, they processed more than 261 billion tax returns and collected more than $4.1T in taxes. With numbers like these, you can see why patience is important when waiting for your refund.
You may be tempted to call the IRS to receive an update, but we encourage you to check your status online or connect with us, and we can get you an update. Millions of people contacting the IRS make processing times even longer.
Most refunds are processed and submitted to taxpayers within 21 days when filing electronically and choosing direct deposit as your payment option. Taxpayers filing by mail or selecting another payment method can expect longer wait times.
The IRS is required by law to hold refunds for the earned income tax credit and the additional child tax credit until mid-February. This is under the PATH Act to prevent fraudulent returns. Taxpayers claiming these credits can still file electronically starting in mid-January.
Some returns require manual processing, which delays when returns are delivered. This could be due to a system alert, incorrect information, or missing information. To avoid these kinds of delays, you can work with a professional (like RWB Tax Services) to ensure you file 2023 taxes correctly!
You want to be as prepared as possible when you file 2023 taxes. This makes the process run smoothly. Here are a few tips:
If you generally owe money for taxes, it might be a good time to check your withholding information. This can save you a lot of money in the long run. If you have any major life changes, such as the birth of a child or a second job, it is also a good idea to assess and change your withholding.
Not sure how to determine your withholding? Check out the IRS’s tax withholding estimator to help guide your decision.
There are a lot of documents you need to file 2023 taxes. It’s best to collect them and organize them as you receive them, so they are not lost. If you receive electronic documents, we recommend you print them and save them on your computer.
It’s vital you wait to file the 2023 taxes until you have all the required documents. These include:
Do you want to relieve the stress of worrying about the 2023 tax season? Working with RWB Tax Services will give you the peace of mind you need.
With more than 50 years of combined experience, our tax professionals have helped clients for more than 13 years. We’ve helped clients receive the largest tax returns possible across Georgia.
You can trust us to complete your taxes within the deadlines and with 100% accuracy. Our prices are reasonable. We can help you avoid costly mistakes and prevent penalties in the thousands of dollars in Georgia. Call us today to set up an appointment to discuss the 2023 tax season at 770-459-9980. Or you can contact us with this form.
2020 is finally over, but now a new challenge lies ahead - filing your 2020 taxes. Thanks to COVID-19, many things have changed for the 2021 tax season. Let's take a look at the important updates for this tax season:
Here are the critical dates listed by the IRS that taxpayers should remember for the 2021 tax season:
Let's get into the details so you can be confident when filing your taxes this year.
Deductions and credits help you keep more of your money. Tax deductions help reduce how much of your income is taxed for federal income taxes. Tax credits reduce your actual tax bill.
Here are some deductions and credits you may be able to claim on your 2020 tax return:
If you are self-employed, there are many deductions you can claim on your taxes, such as travel costs and the home office deduction if you use an office in your house for business.
The CARES Act permits taxpayers to subtract up to 100% of their adjusted gross income (AGI) in charitable donations if they plan to itemize their deductions. The CARES Act also added a new standard deduction that makes it possible to write off up to $300 of charitable contributions made in cash.
Families may be able to claim up to $2,000 per child with this credit. And because this is a refundable credit, you could receive up to $1,400 per child as a refund.
The EITC is a refundable credit implemented to help low- and middle-income workers. Depending on your earnings for the year, how many dependents you have, and your filing status, this credit could save you between a few hundred to a few thousand dollars on your taxes.
You can deduct medical expenses above 7.5% of your AGI (adjusted gross income), which is your total income minus any other deductions you have already taken.
There are many other deductions and credits that could save you money ave you money depending on your circumstances! If you don't want to miss these savings, work with a tax prep advisor at RWB who can make sure you're not leaving out any credits or deductions.
Let's dive into the basics for the 2021 tax season updates concerning COVID-19.
Many taxpayers found themselves out of work due to the pandemic and received unemployment benefits for support. Those who collected unemployment benefits will need to pay income taxes on those funds.
If you chose not to have taxes taken from your unemployment when you signed up, you will either have to pay quarterly taxes or set aside enough money from your unemployment benefits to pay your taxes.
During the 2020 pandemic, the government sent $1,200 stimulus checks to millions of Americans (plus up to $600 per child). Your stimulus check will not be taxed. Instead, it's being counted as a refundable tax credit for 2020.
The CARES Act also offered small business owners Paycheck Protection Program (PPP) loans. These loans are "forgivable" if they were spent on certain business expenses. However, the IRS says that any expenses you paid with money from those PPP loans cannot be deducted from your taxable income.
Any money taken out of an Educational Savings Account (ESA) or a 529 Plan must be used for educational expenses to be considered tax-free. Many universities went virtual or canceled classes this year—which means your university might have refunded your ESA or 529 money. If so, you had 60 days to put the money back in the account OR use it to cover other educational costs. If you didn't do this, you might have to pay the taxes and a withdrawal penalty.
There were several changes to retirement plans in 2020—and those changes could affect your taxes this year.
If you did take funds out of a 401K or traditional IRA, you have three years to put that money back and get refunded for taxes paid on those funds. Reach out to a professional who can walk you through the process. If you need help, give us a call at 770-456-9980.
Working with a tax professional is a smart choice, especially with all of these new chances to save money on your 2020 tax return. If you're looking for a trustworthy tax pro near you, look no further. Our tax experts have many years of experience and can help you file your tax refund with confidence. Call us at 770-456-9980, or fill out the form to schedule an appointment today!
No, the stimulus money will not count as taxable income. It's being counted as a refundable tax credit for 2020. (Your stimulus check is almost like an advance on funds you would have received as part of your tax refund in 2021.)
Yes, the unemployment benefits you collected in 2020 will count as taxable income on your tax return. If you chose not to have taxes withheld from your unemployment payments, then you'll have to pay quarterly taxes on it.
Did you deliver groceries with Instacart or drive for Uber? The money you made doing odd jobs or freelancing will be taxed, so here's a summary of what you need to know:
The home office tax deduction is only allowed for freelancers, independent contractors, or self-employed people who have a home office used solely for regular business. Unfortunately, that means workers sent home by their employers throughout COVID-19 don't get this deduction since they don't only work from home.
The Trump administration permitted companies to suspend payroll taxes from September 1, 2020, through December 31, 2020. So, if you work for the government or at a company that chose to defer payroll taxes, you saw a temporary increase in your paychecks. Unfortunately, this is not a tax break—those taxes will still need to be paid. That means your employer will have to take those extra taxes out of your paycheck between January and April 2021, so you'll have a decreased paycheck during that time.
This 2021 tax season could get messy for many Americans who have seen their lives changed by this pandemic. If you're one of them, it is a good idea to contact a tax advisor who is updated on the news and developments for this tax season in 2021.
If you want to ensure your taxes are done correctly and avoid making substantial tax errors that could cost you thousands of dollars, our Georgia tax professionals are ready to help! Give us a call today at 770-459-9980.
2021 has ended, but a new challenge awaits: paying your 2021 taxes. Due to many new tax laws and tax credits, numerous things have changed for the 2022 tax season. Let's look at the most significant tax season updates for 2022.
Don't hesitate to contact us if you need help or have any questions, or click the button below to make an appointment with a seasoned tax pro in Villa Rica.
Here are the critical dates listed by the IRS that taxpayers should remember for the 2022 tax season:
From January 1 to May 17, 2021, the IRS phone systems received more than 145 million calls, more than four times the number of calls received in a typical year, due to COVID-era tax reforms and larger epidemic difficulties.
Before contacting the IRS, customers are encouraged to check online resources. You can also call RWB Tax Services in Villa Rica, GA, for help.
The average tax refund was more than $2,800 last year. More than 160 million individual tax returns are projected to be filed for the 2021 tax year, the great majority of which will be done before the typical April tax deadline.
In general, the IRS expects most taxpayers to get their refund within 21 days of filing electronically if they choose direct deposit and their tax return is error-free. The Internal Revenue Service (IRS) encourages individuals and tax professionals to file online to speed up the return process. People should avoid filing paper returns whenever feasible to prevent processing delays.
The IRS is prohibited from issuing refunds for the Additional Child Tax Credit or the Earned Income Tax Credit before the middle of February. However, qualified taxpayers may submit their forms beginning on January 24. This extra period is provided by the law to assist the IRS in preventing false refunds from being distributed.
If the IRS systems identify a possible error or missing information, or there is suspected identity theft or fraud, some returns may require manual examination, which slows processing. Some of these circumstances require communication with taxpayers, while others do not. Because this activity involves special handling by an IRS employee, the IRS may take longer than the standard 21 days to process returns with errors. That is why it is critical to hire an experienced, local tax professional like RWB Tax Services in Villa Rica, GA, who knows all of the recent tax law changes and can make sure your return is error-free for the fastest return possible.
Before filing your taxes this year, here are a few things that you should be aware of:
For monetary donations made to qualifying organizations in 2021, taxpayers who do not itemize deductions may be eligible for up to a $600 deduction for married taxpayers filing joint returns and up to $300 for all other filers.
Families who got advance payments will need to compare the amount of the child tax credit they will be able to claim on their 2022 tax return with the amount of the child tax credit they received in 2021.
On their 2021 tax return, taxpayers who got less than the maximum amount of their child tax credit will claim a credit for the leftover balance.
Qualified families who did not get advance payments in 2021 may still receive a lump-sum payment by submitting a 2021 federal income tax return and claiming the child tax credit. This includes families that don't usually file a tax return and families with no income.
The IRS will issue Letter 6419, detailing the total amount of advance child tax credit payments that filers received in 2021. You should keep this letter and any previous IRS letters concerning advance child tax credit payments with your tax records. Individuals can also see their child tax credit payment amounts by creating or logging into an IRS.gov online account.
Based on their 2021 tax information, individuals who did not qualify for the third economic impact payment or did not get the entire amount may be eligible for the recovery rebate credit. However, they'll need to submit a 2021 tax return to claim the credit, even if they didn't have any income for 2021.
When filing their tax return, individuals will need the amount of their final economic impact payment, as well as any plus-up payments, to determine their exact 2021 recovery rebate amount owed.
The IRS will send Letter 6475 in early 2022, including the exact amount of the third economic impact payment and plus-up payments received. Individuals can also securely access their economic impact payment amounts by creating or logging into an IRS.gov online account.
The IRS recommends that taxpayers take the following steps to avoid processing delays and expedite refunds:
Tax documents that are organized make it easier to prepare a correct tax return. It assists you in avoiding errors that cause processing delays, which slow down your return, and it may also help you locate previously overlooked deductions or credits.
Wait to file until you have all of your tax records, which may include the following:
Address changes should be reported to the IRS, and legal name changes should be reported to the Social Security Administration.
Remember that most income is taxable. This includes:
If you owed taxes or received a substantial refund last year, you may want to modify your withholding. Changing your withholding can save you money on taxes and allow you to retain more money each payday. In addition, changes in life, such as marriage or divorce, the birth of a child, or the addition of a second job, may necessitate a change in withholding.
Use the Tax Withholding Estimator to determine how much tax should be withheld from your paycheck. If you need to alter your withholding and submit a new Form W-4 to your employer, use this tool on IRS.gov.
Our team at RWB Tax Services has over 50 years of combined experience. For over 13 years, they've helped clients in Villa Rica, Douglasville, Carrollton, and West Georgia get the largest tax refunds legally.
You can trust RWB Tax Services to complete your taxes correctly, on time, and at a reasonable cost. We can help you avoid costly tax mistakes in Georgia so you can prevent thousands of dollars in tax penalties. Don't hesitate to reach out to us by calling 770-456-9980 today.
There are many questions about the Economic Impact Payment stimulus, and RWB Tax Service will try to answer them for you. As we learn more information, we will add it here. So check back often!
There are many reasons why you might not have received your Economic Impact Payment yet.
The IRS is still releasing payments over the next few weeks, and yours may just take a little longer to get to you. Some people are having theirs directly deposited into their accounts, while others will be receiving a paper check in the mail.
There are a variety of reasons why people do not have to file taxes. If you traditionally do not file a tax return you may need to do so in order to receive your Economic Impact Payment. To determine if you need to file this year, Go to IRS.GOV
If you filed your tax return and received your refund using a loan advance bank product, let me try to explain what seems to be happening with your EIP Check.
When you began the process of getting a refund advance, you agreed to open an account with the providing bank. This account was open to issue you a loan (if applicable), process a payment to your tax professional, and then sending you the remaining proceeds (your tax refund). When your return was processed, the IRS was provided the routing and account number of that account. Once the IRS funded your refund you received the balance in the form of a direct deposit, check or card. Then the bank CLOSED that account.
Now that the IRS is trying to send out EIP funds, they have that closed loan account information on file, instead of your direct banking information. When the IRS used the routing and account number for the EIP, it is directed to a now closed account and those funds are sitting at the bank. The bank has no way to put the funds in the closed account. So the only option the bank has is to return the funds to the IRS.
Now here is where I have to speculate: if you can put your direct deposit information in the “Get My Payment” tool at IRS.GOV. Then you have a hope of getting this via direct deposit. If you can’t then it will change to a paper check mailed to the address of record. These checks are scheduled to start coming out the first week of May and will be sent on a rotation based on your Adjusted Gross Income. Those with incomes below 20,000 will come out first. The 30,000 the following week etc.
I hope this helps explain the process and helps you understand why your EIP may be a little slower getting to you, but it will come.
1. Social security income – Do you have dependent children under 17? Yes, you need to enter your information at IRS.gov.
2. Social Security income not direct deposited – Yes you need to enter your information if you want to receive the payment by direct deposit.
3. Receive Social Security Income by Direct Deposit- NO you do not need to file.
4. Income level below filing threshold – 12,200 single, 24,400 married filing joint – Yes you need to use the link
5. I have not provided my direct deposit information to the IRS – You will receive your payment by check.
6. I haven’t filed yet, If you filed 2018 you will still get your check. If you provide your banking information you will receive your payment direct deposit otherwise you will receive it by mail.
7. No Banking information provided to the IRS – you will receive your payment by check.
8. Incorrect banking information provided to the IRS – There will be a link mid-April to update that information. Do NOT use the non-filer link.
The payments will not have to be repaid if you receive too much. If you receive too little there will be reconciliation when you file your 2020 tax return.
These are just a few answers, I am sure this doesn’t cover every situation. If you haven’t filed yet, I urge you to file as soon as possible. If you are confused or can’t fill out the link from the IRS we are open to help you.
Available only on IRS.gov, the online application is safe and secure to use. Taxpayers only need a few pieces of information to quickly obtain the status of their payment and, where needed, provide their bank account information. Having a copy of their most recent tax return can help speed the process.
For taxpayers to track the status of their payment, this feature will show taxpayers the payment amount, a scheduled delivery date by direct deposit or paper check and if a payment hasn’t been scheduled.
They will need to enter basic information including:
Taxpayers needing to add their bank account information to speed receipt of their payment will also need to provide the following additional information:
Get My Payment cannot update bank account information after an Economic Impact Payment has been scheduled for delivery.
To help protect against potential fraud, the tool also does not allow people to change bank account information already on file with the IRS.
A Spanish version of Get My Payment is expected in a few weeks.
Don’t normally file a tax return? Additional IRS tool helps non-filers:
In addition to Get My Payment, Treasury and IRS have a second a new web tool allowing quick registration for Economic Impact Payments for those who don’t normally file a tax return.
The Non-filers: Enter Payment Info tool, developed in partnership between the IRS and the Free File Alliance, provides a free and easy option designed for people who don’t have a return filing obligation, including those with too little income to file. The new web tool is available only on IRS.gov, and users should look for Non-filers: Enter Payment Info Here to take them directly to the tool.
Did not file taxes: Enter Payment Info is designed for people who did not file a tax return for 2018 or 2019 and who don’t receive Social Security retirement, disability (SSDI), or survivor benefits and Railroad Retirement benefits. Additional information is available at https://www.irs.gov/coro…/non-filers-enter-payment-info-here.
No action needed by most taxpayers: Eligible taxpayers who filed tax returns for 2019 or 2018 will receive the payments automatically. Automatic payments will also go in the near future to those receiving Social Security retirement, or disability (SSDI), or survivor benefits and Railroad Retirement benefits.
We recommend you file them right away, and we can help!
There seems to be a delay for people who haven’t filed their 2019 taxes yet. Also, if you had any changes to your banking since filing in 2018, the IRS does not have updated information.
There has not been a definite answer released yet, but I suspect you will have to wait for the bank to reject your deposit and then you will have to enter the correct direct deposit information or it will convert to a mailed payment.
Right now there isn’t a way to correct that by phone, website or any instructions. There is a form you can complete, but there is not a person at the IRS to process that change.
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