Get ahead of the game with these expert tips
- You don’t have to wait for the IRS to open tax season. You can start recording now, and there’s no downside to that.
- A tax preparer even motivates people to do this with an opportunity to make money.
- Tax preparers also offer tips for research this year.
It’s never too early to file your tax returns, and just to underscore the point, a tax preparer offers an incentive to do so.
On Monday, tax preparer Jackson Hewitt kicked off a weekly “Double Your Refund” sweepstakes through April 2.
In celebration of its 40th anniversary, Jackson Hewitt is awarding 40 jackpot winners a “double tax refund” cash prize equal to the value of the winner’s federal tax refund, up to a maximum of $15,000, and a minimum prize of $1,500. In addition, each week 40 runner-up participants will be randomly selected to win $400.
You can get an entry into a sweepstakes by filing your taxes with Jackson Hewitt or if you don’t file your taxes with them you can still mail an entry by the Monday following the week your federal tax return was filed during the sweepstakes period.
And yes, those gains should be reported and taxed but not until next year’s tax season, says Mark Steber, chief tax officer at Jackson Hewitt.
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In the meantime, Americans should work to file this year’s taxes as soon as possible to secure their refund. The IRS said Thursday that it will begin processing tax returns on January 23, but you can submit them Now to make sure you are actually on the waiting list to be one of the first operations the IRS does and to secure Jackson Hewitt’s entry into the sweepstakes.
“The tax refund, for most Americans, is the single biggest payday of the year,” Steber says. “Most of them will get more than $3,000.”
What is the earliest I can file for taxes 2023 and why should I file early?
Today is as good a time as any to prepare and submit your tax return to the IRS. Just know, it won’t be processed until the IRS officially opens tax season on January 23rd.
If you file your tax return now to be queued for when the IRS begins processing tax returns, your return will be among the first to be processed, which also means that if there are no issues, you will be among the first to receive your refund check. your.
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There are other reasons to file early, too. They include:
- Secure your information. Once you file and the IRS has your return, no one can steal your information and try to file a return on your behalf and steal your refund.
- More time to submit an accurate return. If you or the tax preparer finds an error, you have more time to correct it. Accurate return submission will ensure that you will receive a prompt refund if you deserve it.
- It’s time to prepare finances in case you owe money. If you owe money, it’s best to find out sooner rather than later so you can get paid. Even if you file your taxes early, you still have until April 18 to pay.
What should I expect this tax season?
Just like most things in our lives, tax laws date back to pre-pandemic times.
This means, for example, that people can no longer take charitable tax deductions again unless they itemize their deductions, and items itemized exceed the standard deduction. Last year, taxpayers could claim a deduction of up to $300 from donations or $600 from those who give jointly even if they took the standard deduction.
Both the Child Tax Credit and the Child and Dependent Care Tax Credits have been reduced back to pre-pandemic levels, $2,000 per child and up to $3,000 per one dependent or $6,000 for multiple dependents, respectively.
There was also no government stimulus in 2022, which the IRS earlier warned along with some other tax reversals could mean smaller refunds this year.
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What tax tips should I consider?
Even though home sales fell sharply at the end of 2022, millions of homes are still being bought and sold and that will affect your taxes.
“If you buy a home, you have one major life change that will fundamentally change your taxes,” Steber said. If you bought a home, he said, you’ve probably moved on to itemized deductions if you haven’t already.
Items you may be able to deduct include:
- Prepaid mortgage interest (in points),
- Real estate taxes you paid
- Qualified mortgage interest
- Mortgage insurance premiums
Also, don’t forget, if you sell a home as well, you can deduct certain expenses related to selling that home such as legal fees, warranty fees, advertising costs, and real estate agent commissions.
If you lived in the home you sold for at least two of the past five years, you can also exclude up to $250,000 in capital gains from the sale if you’re single, and $500,000 if you’re married.
In the past year, we’ve also seen a lot of job switching. If you’re a higher earner, know that the amount of Social Security taxes you pay is capped. So if you max out and then change jobs, “there’s no way your new employer will know about it and they’ll start withholding that again,” Steber said. He said that extra withholding should be returned to you as a credit on your federal income tax.
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Special tax considerations for retired and elderly taxpayers
said Lynette Lee Villanueva, corporate vice president Tax assistant In the AARP Foundationwhich offers free tax services to seniors across the country between February 1 and April 18.
Instead of a W-2 form from your employer, you’ll have to track likely multiple 1099-Rs for distributions from pensions, other retirement funds, and Social Security documents.
Also, when you turn 65, the IRS offers you a larger standard deduction. For example, a single taxpayer age 65 receives a standard deduction of $14,700, compared to $12,950 for those younger.
This higher standard deductible means fewer people itemize, but Lee Villanueva warns that “people with higher health deductibles are still better at detailing, so they need to track things like mileage to round-trip appointments and medical expenses.” others that may qualify.
Also consider your location if you are older.
“A lot of states have some form of property tax program that will help people stay in their homes, either by freezing or reducing property taxes for older Americans,” she said. “They should be aware of what is available to them and may qualify for it.”
Medora Lee is USA TODAY’s money, markets and personal finance correspondent. You can contact her at mjlee@usatoday.com and sign up for the free Daily Money newsletter for personal financial advice and business news every Monday through Friday morning.