Taxpayers can find online tools at IRS.gov that are easy-to-use and available anytime. Millions of people use them to help file and pay taxes, find information about their accounts, determine eligibility for tax credits and get answers to tax questions. Eligible taxpayers who received advance Child Tax Credit payments should file a 2021 tax return to receive the second half of the credit. Eligible taxpayers who did not receive advance Child Tax Credit payments can claim the full credit by filing a tax return. The IRS continues to reduce the inventory of prior-year individual tax returns that have not been fully processed. As of December 3, 2021, the IRS has processed nearly 169 million tax returns.
Extensions are available but they delay only the filing of the paperwork, not the payment of any taxes owed. Interested taxpayers can go to directfile.irs.gov, where they can determine if they are eligible. Once their identity is verified and they’ve signed in securely to Direct File, they will be providing tax season the tax information directly to the IRS, not a third party. In January 2022, the IRS will send Letter 6419 with the total amount of advance Child Tax Credit payments taxpayers received in 2021. People should keep this and any other IRS letters about advance Child Tax Credit payments with their tax records.
April 18 tax filing deadline in 2023
Many different factors can affect the timing of a refund after the IRS receives a return. Although the IRS issues most refunds in less than 21 days, the IRS cautions taxpayers not to rely on receiving a 2022 federal tax refund by a certain date, especially when making major purchases or paying bills. Some returns may require additional review and may take longer to process if IRS systems detect a possible error, the return is missing information or there is suspected identity theft or fraud.
The IRS has not yet set the date it will begin accepting 2023 returns. Now’s also a great time to gather your receipts (you kept those, right?) if you plan on itemizing your deductions so you’re not scrambling and pulling your hair out by the time April rolls around. If the information is incorrect on the 1099-K, taxpayers should contact the payer immediately.
The average tax refund over the last five years, per individual
Taxpayers can log in to Direct File to start their return and complete it any time before the April filing deadline. Taxpayers who received less than the amount for which they’re eligible will claim a credit for the remaining amount of Child Tax Credit on their 2021 tax return. Taxpayers who received more than the amount for which they’re eligible may need to repay some or all of the excess payment when they file. The IRS has received over 80 million tax returns so far this tax season. Itemized deductions let you cut your taxable income by taking any of the hundreds of available tax deductions you qualify for. In short, a tax credit gives you a dollar-for-dollar reduction in the amount of tax you owe.
If you need more time because you live in an area hit by a natural disaster, you might qualify for tax relief from the IRS. The IRS often postpones the tax filing deadline for taxpayers who live in or have a business within a federally declared disaster area. Just keep in mind, the tax extension gives you more time to file your return, not more time to pay the tax you owe. You’ll need to estimate the amount you owe and make your payment by the tax filing deadline even if you file an extension. You can deduct any medical expenses above 7.5% of your adjusted gross income (AGI).6 For example, if your AGI was $100,000, you can deduct out-of-pocket medical expenses above $7,500 in tax season 2024.
Avoid refund delays and understand refund timing
By comparison, the IRS had sent out over 53.9 million refunds by March 17, 2023. Generally the deadline to claim old refunds falls around the April 15 tax deadline, but this year the three-year window for 2020 unfiled returns was postponed to May 17, because of the COVID-19 pandemic. But if taxpayers haven’t filed a return for tax year 2021 and 2022, any 2020 refunds would be withheld until they file for those years as well to make sure they don’t owe.
- The IRS anticipates that most taxpayers will receive their refund within 21 days of when they file electronically, barring any issues with processing their tax return.
- Taxpayers must report all income on their tax return unless it’s excluded by law, whether they receive a Form 1099-K, a Form 1099-NEC, Nonemployee Compensation, or any other information return.
- The amount of federal income tax you pay throughout the year not only affects how much, if any, refund you’ll get but also how much money you take home in your paycheck each month.
- To learn more about what Congress is discussing, see Kiplinger’s coverage of the bipartisan tax deal.
- Annual income taxes are based on the prior year’s income, which is why tax season starts around the beginning of the year.
- Contributions to HSAs are tax-deductible, and the withdrawals are tax-free, too, as long as you use them for qualified medical expenses.