Important Tax Deadlines – CT Accounting & Tax

FILING YOUR TAXES

Tax Day 2023: Final Deadline to File Your 2023 Taxes

Like most people, you'll need to file taxes in 2024 for your 2023 income. Filing early can help you receive your refund sooner. Keep reading to learn when you can file your 2023 taxes, what documents you'll need, the penalties for missing the tax deadline, and how to file for an extension.

Tax Day 2024: When to File Your 2023 Taxes and Key Deadlines

Tax Day 2024 is Monday, April 15, 2024. If you're wondering when you can file your 2023 tax return, the IRS typically begins accepting returns in mid- to late-January each year. In the meantime, you can get a head start by gathering the necessary documents, such as your W-2 and other key tax forms. Jackson Hewitt’s Tax Pros are also here to help you prepare your return for tax season.

Advantages of Filing Your Taxes Early

You have until April 15, 2024, to meet the federal tax filing deadline, but there are many benefits to filing early. Here are a few reasons to consider filing sooner:

Faster Refund with Direct Deposit: Filing early and choosing direct deposit can speed up the process, getting your refund to you faster than waiting for a check in the mail. The sooner you get your refund, the sooner you can use it, whether for savings or to fulfill family needs or wants
Secure Your Preferred Appointment Time: If you work with a Tax Professional, filing early increases the likelihood of getting the appointment time you want. As the tax deadline approaches, appointments fill up quickly, so scheduling early ensures you get the time that works best for you.
Protect Against Identity Theft: Filing early reduces the risk of identity thieves using your information to file a fake tax return and steal your refund. According to the Insurance Information Institute, losses from identity theft rose significantly from $502.5 billion in 2019 to $721 billion in 2021.
Ensure You Claim Your Dependents: For divorced or separated taxpayers, the IRS typically recognizes the custodial parent as the one eligible to claim dependents. Filing early ensures you can claim your children and avoid potential disputes or delays.

By filing your taxes early, you can save time, reduce the risk of fraud, and have greater control over your financial situation.

What documents do I need to file my 2023 tax return?

Before you start filing your taxes, make sure you have all the necessary documents on hand. In addition to copies of previous tax returns and Social Security numbers (or other taxpayer identification numbers) for everyone listed on your return, you'll also need the following documentation and receipts to file your 2023 taxes:

Social Security benefits
Unemployment compensation
Income and expense records for rental property and royalties
Income and expense receipts for your small business or farm, if applicable
K-1 forms from trusts, estates, S corporations, and partnerships, if applicable
W-2 forms for annual wages
Form 1099-INT for interest income
Forms 1099-NEC and 1099-K for self-employment and gig income
Form 1099-G for certain government payments, such as unemployment compensation
Forms 1099-DIV for dividends and capital gains distributions from stocks, bonds, and mutual funds
Form 1099-R for distributions from pensions, annuities, IRAs, and other retirement plans
Form 1095-A (Health Insurance Marketplace Statement) for prepaid health insurance purchased through your state’s marketplace

Unsure about which documents to bring? A Tax Pro can help you determine which forms apply to your situation. Keep in mind that many forms will be sent to you automatically by January 31 of the tax filing season. For instance, employers are required to send W-2 forms by January 31.

What are the 2023 tax brackets (for taxes due in April 2024)?

The 2023 tax year—the return you'll file in 2024—will use the same seven federal income tax brackets as the 2022 tax season: 10%, 12%, 22%, 24%, 32%, 35%, and 37%. Your filing status and taxable income, including wages, will determine which bracket you fall into. These tax brackets are part of a progressive tax system, meaning the tax rate increases as your taxable income rises.

Tax Deductions for 2023 Tax Returns

As you prepare to file your taxes, it's important to consider potential tax deductions. Tax deductions, also known as tax write-offs, reduce your taxable income, which can lead to a lower tax bill or a larger refund for you and your family.
Under the Inflation Reduction Act, the standard deduction for married couples filing jointly in 2023 increases to $27,700, an $1,800 rise from the previous year.
For single taxpayers and married individuals filing separately, the standard deduction for 2023 rises to $13,850, up $900. Heads of household will see a standard deduction of $20,800 for 2023, an increase of $1,400 from 2022.

What Happens if I Miss the Tax Deadline?

If you file for an extension by the tax deadline each year, you won't face penalties. For instance, if you file a federal extension by April 15, 2024, you will not be penalized.

What is the penalty for missing the tax filing deadline?

For federal taxes, the late-filing penalty is 5% of the unpaid taxes, with a minimum penalty of $330 or 100% of the unpaid taxes (whichever is less) if the return is filed late. This penalty increases by 5% per month until the taxes are paid, or until it reaches a maximum of 25% of the unpaid taxes. The late-filing penalty is typically higher than the late-payment penalty. To understand your specific state penalties, it's best to consult with a Tax Pro.

How to File a 2023 Tax Extension

For your 2023 taxes, you can file **IRS Form 4868** to request an extension. This will give you until **October 15, 2024**, to complete and submit your tax return. However, it’s important to remember that any taxes owed for 2023 are still due by **April 15, 2024**. Even if you file for an extension, you must pay your taxes or arrange a payment plan with the IRS by that deadline to avoid penalties and interest.