How likely are you to be audited this tax season?
Lawmakers in Washington recently allocated billions of dollars in taxpayer money to the IRS to increase the number of audits across the country.LEARN MORE
A tax expert says there are three valuable lessons to keep in mind when filing taxes this year after recent IRS changes.
Monday, Jan. 23 is the official start of the 2023 tax filing season, meaning it's now time to get your tax information in order. Filing early is especially important these days if you don't want a possible delay in getting your tax refund.
Justus Lowe was filing his taxes for the first time, so he decided to get help from Liberty Tax.
"This is my first year not being a dependent, the first year doing my taxes on my own," he said.
Getting help his first time was probably a smart move, according to office owner Gina Pinto, who says recent tax changes are confusing for some people.
"This year, the IRS made a lot of changes due to the end of the pandemic benefits," she said.
She says the changes are already leaving some of her clients with smaller refunds.
"The child tax credit went back to $2,000. Last year, it was $3,600," she said, which means less money back for some of her customers.
Have the paperwork ready as soon as possible
With the IRS facing staffing shortages for the third year in a row and continued problems and delays at the U.S. Postal Service, preparers say it's more important than ever this year to have your paperwork ready to go as soon as possible.
Mark Steber of Jackson Hewitt says there are three valuable lessons learned from the past three years.
1. If you want to avoid a delay, don't file a paper tax return.
"Paper returns were slow even before the pandemic, and it's certainly not gotten any faster with the IRS having staffing challenges," Hewitt said.
2. File your tax return electronically.
3. If you're getting a refund, make sure you request a direct deposit into your bank account.
"It gets there faster, gets there safer," he said.
Steber also suggests organizing tax documents into four folders. The first folder should be labeled "income," with the second folder labeled "deductions."
"I like my income items, paper clipped together," Steber said. "I like deductions and credit information — things that you spend on your business — all together."
The third folder, he says, should contain Information related to life changes like a marriage or new child. And lastly, he suggests creating a folder for other miscellaneous items.
"Ask your pro," he said. "It could be a tax break."
All of this helps whether you are filing yourself or at a preparer's office.
Steber's one last tip: Filing doesn't mean paying. You're allowed to file taxes now, but if you may owe money, you can wait to pay until April.
Student loan repayments are resuming, and some borrowers are considering boycotting to refuse to pay.
The report will include bill payment history, loan information, current debt, bankruptcy history and lawsuit records.
Millions of Americans could be impacted by a decision to limit medical debt from appearing on credit reports.
It's a scent that, for many, makes this time of year come alive. But how did the passion for pumpkin spice come to be?
Mexican officials agreed to deport migrants from their border cities and return them to their home countries.
Scripps News explores the original idea behind impeachment and how it has evolved in politics over the years.