The deadline to file your tax returns or request an extension is April 18, 2023. Remember, if you file an extension, you still have to pay what you owe. Tax extensions give you more time to file your 2022 return, not pay your taxes.
Hurricane Ian and the end of some COVID-19 relief, tax payers may need to spend more time preparing their returns.
Tax season 2023 comes with changes:
- A standard deduction increase to $12,950 for single filers and married couples filing separately.
- $19,400 for head-of-household filers, that includes single parents
- $25,900 for married couples filing jointly.
If Hurricane Ian damaged your home, you can deduct the damage insurance didn’t pay for. You’ll need to fill out Form 4684 and add DR-4673-FL on the form. You’ll also need to to itemize your deductions instead of claiming the standard amount. Certified Public Accountant Renee Varga said doing more complicated returns like this on your own can lead to some trouble.
“If you have a sophisticated return trying to do it yourself, that would be a dangerous mistake,” said Varga. “Taking advice of the non-professional is probably the biggest mistake that I see out there.”
As for charitable donations, the $600 charitable deduction for non-itemizers, folks taking the standard deduction, has gone away.
For Southwest Floridians with children, the Child Tax Credit is reverted back to its pre-COVID-19 amounts. This year’s credit adds up to $2,000 per child under 17 years old. The income limit is $400,000 or married filing jointly and $200,000 for all others.
If you found yourself with hefty medical bills in 2022, you can deduct any medical expenses above 7.5 percent of your adjusted gross income.
If you are self-employed, there are a bunch of deductions you can claim on your return, including travel expenses and the home office deduction. But if you’re one of the millions of people who work remotely, you won’t be able to claim the home office deduction since it’s reserved for self-employed people only.
The bank will notify the IRS if you make a deposit of at least $10,000. This also includes cash from side hustles.
“If you make more than $600 on your side hustle, you should be issued a 1099 [form],” Varga added.
The average refund in 2022 was almost $3,500 but don’t look for that much in 2023. The IRS warned people to expect smaller refunds.
If you make less than $73,000, you can file your simple returns for free.