Tax season is officially underway! Whether you file yourself or hand things off to an accountant, there are a few changes to be aware of when preparing to file your return—especially if this is your first time filing. The deadline to file is April 15th, which will be here soon. We’ve put together this list to help you file your taxes with confidence, even if you wait until April! Here’s what to know about filing your 2023 tax return:
New in 2024
Enhanced child tax credit
Congress is currently considering . If approved, this legislation would expand the popular tax credit and allow more families across the United States to qualify for this benefit—and receive more money on their tax refund. While this is likely to be a 2024 tax year change, some lawmakers are pushing to have the legislation passed and applied retroactively to 2023 tax returns. But don’t wait on this to file your tax return—the sooner, the better. You’ll be notified by the IRS if there’s a change that affects your return.
IRS Online Account enhancements
Exciting news on the digital front! If you have a Social Security number or an Individual Taxpayer Identification Number (ITIN), you can now easily access the information needed to file your return. This can be helpful when filing yourself, allowing you to see key information from your most recently filed tax return, including adjusted gross income, without having to dig through your files. You can also set up and manage payment plans, and even cancel scheduled payments. Visit irs.gov/payments/your-online-account to access your records.
How to stay ahead
Understand energy-related credits
Last year, new tax credits were introduced for those with electric vehicles and energy-related enhancements to houses like solar panels. Review those changes to see if you qualify for these expanded credits and make sure you submit all appropriate forms.
Gather 2023 tax documents
The end of January means an influx of tax forms in the mail or your email inbox. Your employer will send you a W-2, which reports how much you were paid, the amount of taxes withheld, and what you contributed to your company’s retirement plan (if they have one available). You’ll receive a W-2 from each employer if you work multiple jobs.
You’ll receive a 1098 form if you have a mortgage, which shows the amount of interest you paid on your home loan (which is usually deductible). If you paid student loan interest, you’ll get a 1098-E. Form 1098-T reports any tuition payments made.
1099 forms report payments from sources that aren’t your employer. There are several types, but the most common are 1099-DIV, 1099-INT, 1099-MISC, 1099-NEC, and 1099-K. 1099-DIV is used by banks or other financial institutions to report any dividends you may have received. Those dividends are also considered interest, which is reflected on Form 1099-INT. You’ll receive a 1099-INT if you were paid more than $10 in interest.
1099-MISC reports any miscellaneous income, like prizes or awards. 1099-NEC reports nonemployee compensation and is common for freelancers, people who are self-employed, or anyone who has a side gig.
A 1099-K is issued to anyone who received $20,000 or more in business income or payments for products and services from third-party payment networks, like Venmo or Cash App.
You’ll also need Form 1095 if you have health insurance through the Marketplace.
Having all of your necessary tax documents together before filing will help you avoid errors and potential processing delays.
Get refunds faster with direct deposit
Filing electronically and choosing direct deposit is the quickest way to get your tax refund. It’s faster than having a paper check mailed to you and avoids any chance of your refund check being lost, stolen, or sent back to the IRS as undeliverable.
Key takeaways
- Be aware of possible CTC changes
- Access your previous year’s tax return and other important documents in your IRS Online Account
- Have your tax documents prepared ahead of time to help maximize your refund and avoid errors or potential processing delays
Remember—if your adjusted gross income (AGI) is less than $79,000 annually, you qualify to file your return for free using the IRS’s Free File program.
The Where’s My Refund tool allows you to track when you’ll receive your refund after your return is accepted by the IRS. April 15th will be here before you know it, so allow yourself plenty of time to file to ensure there are no errors. Keep these tips in mind, and tax season will be a breeze.
