Everything You Need to Know About Filing Your Taxes 2023 Tax Day is rapidly approaching. Here's everything you need to know before April 18.
By Entrepreneur Staff •
Benjamin Franklin said it first: "In this world, nothing is certain except death and taxes."
Although Tax Day occurs every year without fail, it can still be daunting. Regardless of if you hire an accountant, use tax-filing software or file your taxes the old-fashioned way, it's best to be prepared so that you don't face any surprises this tax season.
Why is Tax Day 2023 on April 18 instead of 15?
Tax Day 2023 is April 18. Historically, Tax Day falls on April 15 — however, this year the 15th is a Saturday and the next weekday is April 17, which is Emancipation Day in Washington, D.C. By law, Washington, D.C. holidays impact tax deadlines the same way federal holidays do.
When is the deadline for an extension?
Those who cannot file before or on April 18 can apply for an extension and will have until October 15, 2023, to file income taxes. However, be mindful that an extension does not mean you have extra time to pay any taxes owed; it simply means you have more time to submit your tax forms. If you owe money, it's wise to file your taxes on time to avoid any penalties.
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What changes are made to Tax Day 2023?
Some tax credits such as the Child Tax Credit (CTC), Earned Income Tax Credit (EITC) and Child and Dependent Care Credit will return to 2019 levels, meaning those who qualify might receive a smaller refund than last year.
- Those who received a $3,600 credit per dependent in 2021 for the CTC will, if eligible, get $2,000 for the 2022 tax year.
- Eligible taxpayers with no children who received roughly $1,500 in 2021 for the EITC will receive $500 in 2022.
- The Child and Dependent Care Credit returns to a maximum of $2,100 in 2022; it was $8,000 in 2021.
When will I get my tax refund after filing?
The IRS issues most tax refunds less than 21 calendar days after filing. However, if you file on paper and not electronically, it could take up to four weeks to receive your refund.
Related: 10 Important Tax Numbers Every Business Owner Should Know to Save Big on Their Taxes This Year
How to file your taxes if you moved mid-year or work remotely:
Because the pandemic changed workplace norms irrevocably, many people have relocated. If you moved or changed locations during the past year while still working for the same employer, follow these tips to ensure you file correctly.
- Determine your residency status: If you move to a new state and change addresses, you may become a resident of that state for tax purposes. However, if your permanent address is in your previous state and you spend a significant amount of time there, you might still be considered a resident of the former state and need to file taxes there.
- Gather your tax documents: Collect all the tax documents that you received from your employers, banks and other sources of income. Make sure you have documents from both the state you left and the state you moved to.
- Determine if you need to file state taxes in multiple states: Depending on your residency status and the amount of income you earned in each state, you may need to file state taxes in both your previous state and your new state. Check the tax laws for each state to determine your filing requirements.
- Use tax software or hire a tax professional: Filing taxes can be complicated, especially when you move mid-year. Consider using tax software or hiring a tax professional to help you navigate the process and ensure you file correctly.
- File your federal taxes: Regardless of where you lived and worked during the year, you must file your federal taxes. Use your W-2 forms and other tax documents to file your federal tax return.
- File your state taxes: If you need to file state taxes in multiple states, make sure to file the correct forms for each state. Follow the instructions provided by each state's tax agency and pay any taxes owed.
For more general tax questions and guidance, see this guide.
