The pause between Christmas and New Year’s is a moment when many of us begin to contemplate the looming labors of tax season.
When is the earliest I can file a return? When is the latest? Have the income brackets changed? What about deductions?
Here are answers to 13 common questions that crop up in the weeks before tax season begins.
April 15. Tax Day always falls on that date, unless April 15 falls on a weekend or holiday. Next year, it comes on that darkest of days, a Monday.
Late January. In 2023, the IRS set January 23 as the official start of tax season, marking the date the agency began accepting 2022 tax returns.
Again, late January. The IRS has not yet set the date it will begin accepting 2023 returns.
Income tax brackets jumped by 7% for 2023. Income tax is progressive: the more you earn, the more you pay as a percentage of your earnings. Each bracket represents a range of incomes subject to a particular income tax rate. Tax brackets will rise again in 2024.
Here are the 2023 tax brackets:
For individual filers:
For married couples filing jointly:
The standard deduction for 2023 also increased by about 7%, to $13,850 for individuals and $27,700 for married couples filing jointly.
People over 65 qualify for an additional standard deduction. For 2023, it’s $1,850 if you are single or filing as a head of household, and $1,500 for married taxpayers. Both figures increased by $100 over 2022.
Itemized deductions “mostly remain the same” in 2023, according to Charles Schwab. A few specifics:
Employees who participate in company retirement plans could generally contribute $22,500 to their 401(k) this year, up from $20,500 in 2022. Those who didn’t participate in an employer-sponsored plan could contribute $6,500 to an individual retirement account (IRA). People 50 and older have higher limits.
For 2024, the limits rise to $23,000 and $7,000.
HSA contribution limits were $3,850 for individual coverage and $7,750 for family coverage in 2023, according to Fidelity. In 2024, they rise to $4,150 and $8,300.
The 2023 child tax credit is worth up to $2,000 per qualifying dependent under age 17, according to NerdWallet. The credit decreases if your modified adjusted gross income exceeds $200,000, or $400,000 for a married couple filing jointly.
You can claim “Head of Household” status if you are single or unmarried and maintain a household that includes a child or relative. The status provides for a larger standard deduction and more generous tax rates, according to H&R Block.
Early birds:Your single largest payday may be a 2023 tax filing away. File early to get a refund sooner
TurboTax, H&R Block, NerdWallet and AARP all offer tax refund estimators.
In a month or less, in most cases. The IRS says it issues most refunds within 21 calendar days. Paper returns, however, can take four weeks or more. And allow for time for the refund check to actually reach your bank account or mailbox.
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Daniel de Visé covers personal finance for USA Today.
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