Tax Filing Season in the new year unfolds, so does the anticipation. The Internal Revenue Service (IRS) has officially announced that the tax season will kick off on January 29, marking the first day when the IRS will start accepting and processing 2023 tax returns. Here’s a comprehensive guide to what taxpayers need to know as they prepare to navigate the complexities of filing their taxes.
1. Key Dates
The tax filing deadline for most taxpayers is April 15, 2024. Filing federal returns and paying any balances owed by this date is crucial to avoid penalties and interest. While taxpayers have until April 15, the IRS encourages an earlier start to the filing process.
2. IRS Free File
The IRS Free File program, offering free guided tax preparation through software partners, will open on January 12. This service is available to taxpayers with an adjusted gross income of $79,000 or less for the tax year 2023. It’s a valuable resource for those seeking a cost-effective way to navigate the tax filing process.
3. IRS Direct File Pilot
For those who prefer filing directly through the IRS, the IRS Direct File pilot will be available in phases. This online filing option is expected to have wide availability by mid-March for eligible taxpayers in participating states. It provides an additional avenue for a streamlined and efficient filing process.
4. Transformation Efforts
IRS Commissioner Danny Werfel highlighted ongoing transformation efforts aimed at improving IRS operations. With the implementation of new funding, the IRS is committed to making the process of preparing and filing taxes easier for taxpayers. As a result, taxpayers can expect marked improvements in IRS operations during the upcoming filing season.
5. Individual Tax Returns and Refunds
The IRS anticipates receiving more than 128.7 million individual tax returns by the federal deadline. As of December 29, the average refund for the 2023 tax year stood at $3,167. This information serves as a reference point for individuals awaiting potential refunds.
6. Early Preparation is Key
Taxpayers are encouraged to initiate the filing process as early as possible. Early preparation allows individuals to address any complexities in their financial situations, explore available deductions and credits, and ensure a smoother filing experience.
As the tax filing season commences, taxpayers urged to stay informed about updates from the IRS and take advantage of the resources and programs designed to facilitate the filing process. Whether utilizing IRS Free File, exploring the IRS Direct File pilot, or opting for traditional filing methods, early preparation and awareness of key dates are integral to a successful and stress-free tax season.