IRS Issues New Alert With 7 Key Dates for Taxpayers—And the First Is Tomorrow
<img loading=“lazy” src=“https://bestlifeonline.com/wp-content/uploads/sites/3/2024/01/calculator-tax-2024.jpg?quality=82&strip=1&resize=640%2C360" onerror=“this.onerror=null;this.src=‘https://blogger.googleusercontent.com/img/a/AVvXsEhe7F7TRXHtjiKvHb5vS7DmnxvpHiDyoYyYvm1nHB3Qp2_w3BnM6A2eq4v7FYxCC9bfZt3a9vIMtAYEKUiaDQbHMg-ViyGmRIj39MLp0bGFfgfYw1Dc9q_H-T0wiTm3l0Uq42dETrN9eC8aGJ9_IORZsxST1AcLR7np1koOfcc7tnHa4S8Mwz_xD9d0=s16000';" alt=““Tax 2024” written out on a calculator among paperwork, glasses, pen, and coins. - 1”>
pcess609 / iStock
Starting tomorrow, you can officially start filing your 2023 taxes. As you begin to gather any necessary tax documents—income forms, standard deductions, and personal records—you may also want to take note of a few key filing dates that will help you stay on track and avoid paying any late penalties.
By April 15, the Internal Revenue Service (IRS) expects it will receive more than 128.7 million individual tax returns, per a new notice posted on the IRS website. Financial advisors and tax preparation companies like H&R Block and TurboTax will be busier than ever ensuring those returns are filled out correctly and on time.
RELATED: IRS Announces Major Tax Filing Changes for Next Year—Are You Affected?
To help streamline the process, the IRS is reminding taxpayers about seven key filing season dates and deadlines, the first of which is tomorrow. Have your calendar nearby? Here’s the full 2024 list straight from the IRS:
- January 12: IRS Free File opens.
- January 16: Due date for 2023 fourth quarter estimated tax payments.
- January 26: Earned Income Tax Credit Awareness Day.
- January 29: Filing season start date for individual tax returns.
- April 15: Due date of filing a tax return or to request an extension for most of the nation.
- April 17: Due date for Maine and Massachusetts.
- October 15: Due date for extension filers.
Do note that on Jan. 12, IRS Free File, as well as “participating software companies” will begin accepting completed tax returns. However, they will be held until the filing season officially begins on Jan. 29, the IRS explains.
RELATED: 4 Warnings About Using TurboTax, According to Experts .
Perhaps the most exciting and helpful feature the IRS has focused on is the Where’s My Refund? tool. The tracker, which can be used on a computer or cell phone, allows people to routinely check the status of their refund, including whether they may need to contact the IRS directly for more information, according to the IRS release.
Taxpayers can now also create an Individual Online Account via the IRS website. In the account, users can create payment plans, confirm whether the IRS processed their payment, and even cancel future payments. This tool is especially helpful for independent contractors or taxpayers who have to pay quarterly taxes.
In terms of filing, the IRS has a new paperless processing system that will accept more digital tax and non-tax forms than before—up to 125 million paper documents can now be filed online, per the IRS notice.
In other exciting news, taxpayers now have the option to file their taxes digitally and at no charge via the IRS directly. It’s all thanks to the IRS’ new pilot program called Direct File—however, only certain individuals are eligible. You can check your eligibility status online .
The improvements will hopefully make the 2024 tax season easier for everyone, including tax preparers and the IRS.
“As our transformation efforts take hold, taxpayers will continue to see marked improvement in IRS operations in the upcoming filing season,” IRS Commissioner Danny Werfel said in a statement. “IRS employees are working hard to make sure that new funding is used to help taxpayers by making the process of preparing and filing taxes easier.”
IRS Announces Major Tax Filing Changes for Next Year—Are You Affected?
Pgiam/iStock
The fact that we have to pay our taxes every year is one thing that famously never changes. And while there are plenty of different tools to help you file , it’s more often significant changes in your own life that can alter the process. But now, the Internal Revenue Service (IRS) has announced a set of major changes for next year. Read on to see if you’re affected by the latest updates and what it could mean when it comes time to file.
RELATED: IRS Warns That Claiming These Credits Can Get You Audited and Fined .
iStock
Typically, any change in the tax rate is a development that tends to grab plenty of headlines no matter which way it’s heading. But while those numbers will remain the same the next time you file , the IRS has released an updated set of tax brackets for the 2023 tax year.
The adjustments affect where the boundaries are set for each income level, with progressively increasing rates as amounts increase. This year’s changes take into account inflation, with upper limits that are 7 percent higher than brackets in 2022, Forbes reports. And while deductions and other elements must still be factored in, these brackets can help estimate roughly how much you’ll pay when it comes time to file.
RELATED: 4 Warnings About Using TurboTax, According to Experts .
iStock
So, how much will each group now pay? The lowest tax bracket begins at 10 percent for individuals with $11,000 or less in taxable income—or $22,000 for married couples filing jointly. It then ranges from 12 percent for individuals making between $11,001 and $44,725, 22 percent for those with $44,726 to $95,375 in taxable income, and 24 percent for individuals earning between $95,376 to $182,100.
The new rate for individual income between $182,101 and $231,250 is 32 percent, while people earning between $231,251 and $578,125 fall into a 35 percent rate. It tops out with those who take in $578,126 or more in 2023 paying 37 percent. The complete list of updated brackets and rates—including those for married couples filing jointly or separately—can be found on the agency’s website.
RELATED: 5 Reasons the IRS Might Mistakenly Audit You, Finance Experts Say .
RomanR / Shutterstock
But it’s not just your income bracket that could be changing for this year. In a press release on Oct. 17, the IRS also announced that it would begin rolling out its free tax filing program known as Direct File during the 2024 filing season for certain taxpayers.
The service aims to provide an affordable alternative to tax preparation services many people use to file annually. It’s estimated that Americans spend an estimated $11 billion each year nationwide for professional assistance, CBS News reports.
However, not everyone filing will be able to use the service right away. The agency specifies that eligibility will be limited to “taxpayers with relatively simple returns,” targeting those with specific income, credits, and deductions, according to the press release.
RELATED: 6 Tax Return Secrets From Accountants .
Joyseulay / Shutterstock
Besides individual limitations, where you live could also keep you from using Direct File next year. The IRS said the free program will be available to eligible residents in Arizona, California, Massachusetts, and New York, where state governments have worked to incorporate their own taxes into the new system. Those who live in one of the nine states that do not collect state income tax—Alaska, Florida, New Hampshire, Nevada, South Dakota, Tennessee, Texas, Washington, and Wyoming—could also qualify.
Despite its limited initial reach, officials hope the early rollout will reach at least several hundred thousand taxpayers , CNN reports. The initial phase will also help work out any issues and see if the program could be expanded to a broader pool of potential filers.
“The plan is to roll it out in increments that get larger and larger, consistent with how products like this are rolled out in the private sector,” IRS Commissioner Daniel Werfel told reporters during a call, per CBS News. “We want to make sure it is an easy-to-understand pilot.”
- Source: https://www.irs.gov/newsroom/irs-provides-tax-inflation-adjustments-for-tax-year-2023
- Source: https://www.irs.gov/newsroom/irs-advances-innovative-direct-file-project-for-2024-tax-season-free-irs-run-pilot-option-projected-to-be-available-for-eligible-taxpayers-in-13-states
IRS Announces Major Tax Filing Changes for Next Year—How You Can Benefit
brightstars/iStock
Filing your taxes may be the one thing you count on doing every year, but it might not always be the same process. Even when you haven’t had a major life change such as getting married or starting a new job, the Internal Revenue Service (IRS) still makes adjustments to the process that can affect how you submit your paperwork. In fact, those who are already getting everything in order ahead of the deadline might want to take note after the IRS announced a major set of tax filing changes for next year. Read on to see how you can benefit from the latest update.
RELATED: IRS Warns That Claiming These Credits Can Get You Audited and Fined .
iStock
While plenty of people choose to file their taxes online , the process can still involve a decent amount of physical paperwork for some who require extra forms or documentation . But if you’ve had to rely on the postal service to get everything in on time in the past, you can breathe a sigh of relief.
In a Nov. 7 press release, the IRS announced that it had reached its goal of implementing the Paperless Processing Initiative three months ahead of schedule. The program, which was announced in August, makes it possible for taxpayers to submit all correspondence and responses to notices using a Document Upload Tool on the agency’s website.
The new service provides another significant upgrade from the latest changes released last February, which made the nine most common correspondences available for digital reply, Yahoo Finance reports. The prior system relied entirely on using physical mail to conduct business.
Not only will the new system cut processing time in half, but the agency also says the program will help save over 200 million pieces of paper each year. And while the IRS estimates that 94 percent of individual taxpayers will no longer need to use the mail, those who choose to file through the post will still be able to if they choose to do so.
RELATED: IRS Issues New Alert on What You Must Do Before the Year Is Over .
iStock
If there’s any silver lining to paying your taxes, it’s getting a refund down the line. Now, those who are anxious to see some of their cash come back can get a better idea of when it’s coming thanks to the agency’s newly improved Where’s My Refund tool.
According to the IRS announcement, taxpayers will be able to use the online feature to check the precise status of their refund, as well as find out if they need to respond to an agency request for more information. Previously, the tool provided a generic message that didn’t offer any specific information about a person’s filing.
The tool has seen plenty of use in the past, with about 54 million taxpayers using it to generate 550 million hits in 2022, per the IRS. The agency says the detailed updates will likely reduce the number of phone calls made to the IRS for refund status inquiries.
RELATED: 4 Warnings About Using TurboTax, According to Experts .
iStock
When you’re looking for a quick answer to your questions while preparing your taxes, nothing beats the efficiency of a phone call. This year, the agency says it is continuing with improvements it’s made to its phone service to make the service even more accessible.
The agency says it plans to reach at least an 85 percent level of service once again during the 2024 filing season, carrying over improvements made to the system during last year’s filing brought about by hiring a stable of new representatives, per the press release. The IRS will also aim to have an average wait time of five minutes or less and offer a call-back option if the projected wait time is longer than 15 minutes.
RELATED: If You Already Did Your Taxes, You May Need to File an Amended Return, IRS Warns .
Studio Romantic / Shutterstock
Those who want some in-person help will also see some improvements. The agency says it is opening or has reopened 50 Taxpayer Assistance Centers nationwide and will be increasing the number of available hours for assistance by more than 8,500 hours. The complete list of locations and reopening dates can be found in the press release.
The IRS also says it will be rolling out more pop-up centers and aims to increase the number of taxpayers receiving free in-person preparation assistance by 50,000 returns. All told, some experts think the updates could help smooth out what can be a notoriously tricky and confusing process.
“I think these changes are good news,” Grant Dougherty , enrolled agent and founder of Dougherty Tax Solutions, told Yahoo Finance. “Anytime the taxpayer experience can be improved, I think it’s always a win for everyone involved. I do believe the [2024 filing season] will be a little smoother.”
