At SageSpring, we strive to prepare our clients for every single season of life – and yes, that includes tax season. If you’re already feeling overwhelmed with filing details and 2023 changes, we’re here to help. Preparing with plenty of time to spare can help set you up for a low-stress tax season
When is Tax Season?
The IRS officially announced the start of the 2023 tax season would be on January 23rd1 and the deadline for employers to issue W-2 forms to their employees is January 31st,2 so tax season is in full swing. The “tax season” is when you’ll be working with your qualified professional to help you file your taxes and be taxed for all of your income for the previous tax year. So in 2023, you’ll be paying taxes on your 2022 income.
This year, the tax filing deadline is set for Tuesday, April 18, which means that all federal payment and tax returns are due.3 If you need more time, you can request an extension, which will make your tax deadline October 16, 2023. We recommend that you also check on tax deadlines in the state where you reside.
You can file your tax return online through IRS Free File or a number of third-party services, or you can use a tax professional like an Enrolled Agent (EA) or Certified Public Accountant (CPA) to help you file your tax return.
A Quick Guide to Tax Preparation in 2023
- In late January or early February, you should start to receive all of your necessary forms for this tax season. Consider keeping them stored safely in one place until they all arrive.
- Once you have all of your documentation, prepare to file your taxes by working with a tax professional or using an online option. If your taxes feel complicated this year, or you think you may be missing deductions or credits, a tax pro is an advisable option.
- File your federal tax return by April 17, 2023 to avoid possible penalties.
- If you’re waiting for a potential refund, be patient – the IRS cannot guarantee that you’ll get your return by a certain date.
What’s New in 2023
Inflation-Adjusted Tax Brackets
As you decide on a tax planning strategy, it’s important to stay informed about what’s changed since last year’s tax season. If you’ve been watching the price of… well, just about anything, you know that inflation is on the move, and along with it are new tax brackets. Take a look at this handy 2023 tax brackets chart as you prepare to make sure you aren’t hit with any unwelcome surprises in April. Remember that you are taxed proportionally at a marginal rate, rather than having one flat rate for the entirety of your annual income. For example, if you made $75,000 in 2022, you’ll only be taxed at the 22% rate on the amount that exceeds $55,901.The standard deduction also increased this year. It’s now $12,950 for single filers and $25,900 for married couples who file jointly.
Inflation-Adjusted Retirement Contribution Limits
2023 also ushers in higher limits on retirement contributions like 401ks and IRAs. If you want to increase your contribution to your own accounts, we’ve outlined the new limits for you.
If you aren’t sure about a certain aspect of your tax return, like student loan forgiveness or specific tax deductions and credits, remember that you don’t have to do your taxes alone. At SageSpring, we want to help you enter the 2023 tax season feeling educated and prepared. We’re here to offer financial planning strategies that can allow you to invest in your future. If you have questions, or you’d like to find a financial plan that prepares you for 2023 and beyond, we’d love to start that journey with you. Talk to a SageSpring advisor today.
The foregoing information has been obtained from sources considered to be reliable, but we do not guarantee that it is accurate or complete, it is not a statement of all available data necessary for making an investment decision, and it does not constitute a recommendation. Any opinions are those of SageSpring Wealth Partners and not necessarily those of Raymond James. Prior to making an investment decision, please consult with your financial advisor about your individual situation.
Links are being provided for information purposes only. Raymond James is not affiliated with and does not endorse, authorize or sponsor any of the listed websites or their respective sponsors. Raymond James is not responsible for the content of any website or the collection or use of information regarding any website’s users and/or members.
Please note, changes in tax laws may occur at any time and could have a substantial impact upon each person’s situation. While we are familiar with the tax provisions of the issues presented herein, as Financial Advisors of RJFS, we are not qualified to render advice on tax or legal matters. You should discuss tax or legal matters with the appropriate professional.
