2023 Tax Filing Season: Key Dates, New Tax Brackets, and Everything You Need to Know

tax season

Expect a busy 2023 tax filing season as the new tax laws take effect. Start preparing now for the coming changes.

With an expected 168 million or more individual tax returns about to be filed this year, it’s vital to organize your information to file your tax returns correctly. Fortunately, the IRS plans to improve its service for taxpayers over the last year, including hiring over 5,000 new telephone assistors and additional in-person staff.

The IRS urges people to collect all needed information and carefully review their tax situation for eligible tax credits before they file a tax return. Keep reading to learn key dates and new tax bracket information to help you file a complete and accurate tax return.

Key Dates for the 2023 Tax Season

With the 2023 tax filing season upon us, it’s essential to know key dates so you can file your taxes on time and avoid penalties. Make sure you mark these key dates on your calendar.

  • The tax filing season starts Monday, January 23, 2023, when the IRS begins accepting and processing tax returns from 2022.
  • The filing deadline to submit 2022 tax forms or an extension is April 18, 2023. Although traditionally on April 15th, the date is pushed back this year by Emancipation Day in Washington, D.C.
  • Taxpayers who have requested an extension have until October 16, 2023, to file their returns.
  • The IRS set January 27, 2023, as a day to help educate people about the Earned Income Tax Credit and its benefits for low to moderate-income families and workers. Qualifying taxpayers can use this credit to decrease owed taxes and boost their refunds.

New Tax Bracket Information

The U.S. has a progressive tax system, meaning tax rates increase as income increases. While the current seven tax brackets, with rates ranging from 10% to 37%, will remain in place for 2023, the income taxed at each rate will change.

Prompted by inflation, the IRS has raised tax bracket thresholds with upper limits 7% higher than the income tax brackets for 2022. These changes automatically will apply when you do your taxes. The adjustments seek to offset incomes that have not kept up with inflation to prevent paying higher tax rates.

Tax deductions reduce your taxable income, lowering your tax bill. In 2023, the IRS plans to raise the standard deduction.

Do you qualify for the IRS Free File program?

Offered through the IRS website, the IRS Free File program provides free online tax preparation and electronic filing for eligible taxpayers. Eligibility is based on income. Taxpayers whose AGI in 2022 is $73,000 or less can receive Guided Tax Preparation, while taxpayers over this threshold can access Free File Fillable Forms.

Consult a Tax Professional

Preparing for the 2023 tax filing season is crucial. Taxpayers still determining how changes affect them should consult a tax professional. Smith, Stohlman, James & Gardere, P.A. can help you streamline the process and make filing efficient. Learn how our tax services can help you prepare federal and state income tax returns. Contact our Orlando, Miami, and Palm Beach Gardens offices today.