2023 Filing Season to Begin Jan. 23
The IRS announced it will begin accepting electronically filed returns (for individuals) on January 23. This will mark the beginning of tax season for most tax professionals. In an effort to make the process painless for all parties involved, here are a few things to note:
If you have any questions, ask them now
As tax season gets into full swing, your tax professional will have less availability to discuss questions and concerns that arise. Start going through your tax documentation now, if you haven’t already, and compile a list of issues for discussion. This will give you a better idea of you tax picture and your tax professional more time to address your concerns.
Create a list of expected tax forms
Tax forms are delivered at different times and through different mediums. If you create a list of forms you expect to receive, you can check them off as you receive them.
Some forms, such as W-2s and 1099-NECs, are issued before the end of January. Others, such as 1099-Bs and K-1s, may not be issued until February or March (or later). Be aware, you may have opted out of mailings, so you will need to download certain forms from your bank or brokerage account.
For gamblers, you will want to have your log book and records ready. Although your tax professional can help with some aspects, they will not be able to create your log book for you. Also, some online casinos provide W-2Gs at the time of the winning wager, while others will wait until the end of the year to send them. If you know you had a reportable win, be on the lookout for the W-2G or visit your online account and download all relevant forms.
Send all tax documents together
Do not send each tax form to your tax professional as they arrive. Wait until you have all (or substantially all) of your documents and submit them all at once. This will reduce the likelihood of lost documents and make it easier to prepare your return in a timely fashion. Communicate with your tax professional to see what works best for them.
If you file early and are due a refund, expect a direct deposit within 21 days
Many taxpayers file early because they know they are due a refund. One of the most frequently asked questions we receive: how long will it take to get my refund?
The IRS says to allow 21 business days for refunds, but if you file early using direct deposit, you will, most likely, receive your refund a bit quicker. However, if any portion of your refund includes the Earned Income Tax Credit, you will not receive it until February 28, at the earliest.
The filing deadline is April 18
Although April 18 seems like an eternity, it approaches faster each year. Do not wait until the first week of April to organize your documents and reach out to your tax professional. Most require all documentation by March 30, so make sure to stay on top of internal deadlines.
Tax payments are due on April 18
If you owe tax, it must be paid by April 18. Even if you file an extension, it still must be paid by April 18. Unless you are in a qualified disaster area (such as California), your tax must be paid by April 18.
If you are missing tax forms, have outstanding questions, or aren’t able to provide an accurate tax picture before the filing deadline, there is no harm in filing for an extension. Make sure to communicate with your tax professional if an extension is needed. If not, you can do it yourself (you can do so here).