Must-Know Information for Tax Season 2023 | Sensible Services ABC in Hammond, LA. Image of tax payment day April 18 marked on a calendar

Must-Know Information for Tax Season 2023

Tax season 2023 is here. This is a time to lean on the tax preparation and tax planning services providers, letting the experts handle your taxes while you remain laser-focused on work. Sensible Services ABC is here to provide guidance. 

Here’s the inside scoop on what you need to know when filing taxes in 2023.

Have a Reliable Tax Accountant By Your Side

The “Tax Day” of 2023 is April 18. The new tax year presents a new series of challenges and complications ranging from tax credits to stimulus checks and more. If you are like most people, you haven’t filed your taxes yet, and you haven’t kept your finger on the pulse of the tax system changes. 

There’s no reason to panic. Gather all the necessary information, provide it to our tax accountant in Hammond, LA, and let Sensible Services ABC handle the rest. 

We’ll need your records, taxpayer identification number, PIN, and additional documents that we’ll go over in more depth during an initial consultation. The more you provide to our tax team, the easier it will be to file your taxes in full compliance with the law.

Everyone throughout the USA should be aware that the IRS added 5,000+ additional employees for ’23 taxes, some of whom will add extra scrutiny to the tax review process. Rely on our tax professionals for assistance; we’ll do everything possible to ensure your taxes are accurate and filed on time.

Mind the Tax Timeline

Time is of the essence. Though the IRS began accepting applications in mid-January, the filing deadline is April 18. The usual tax filing deadline of April 15 is no longer applicable as it falls on a weekend.

Stimulus Payment Details

Some taxpayers received a stimulus check, special rebate, inflation relief check, or tax refund payment in the year gone by. If you received any such payment, you might be curious whether that payment will be taxable on the federal income tax return. 

The IRS has made it known that it will not challenge special state payment taxability in more than 20 states. Louisiana is among the states not listed. If any such payments were made in the previous year, they would be included on the 2022 tax return.

If you have any questions about payments made to you or your business in the previous year, do not proceed without the reassurance that you are filing correctly. Put your faith in Sensible Services ABC; we’ll provide an informative consultation and ongoing guidance to help you file your taxes correctly.

Side Gig Details of Note

More and more Americans launch a side gig with each passing year. Rewind a couple of months ago, and the mainstream media was up in arms about the implementation of the $600 rule implemented by the IRS for the upcoming tax season. 

The widespread complaints ultimately forced the IRS to delay the implementation of the $600 rule, meaning those who received $600 or more in ’22 through online payment systems (such as PayPal for side gig work) do not need to fill out the 1099-K form. 

However, there is still a possibility that you will receive a 1099-K for 2022 prior to January 31. If you receive this form, verify that it is accurate in relation to the information in your records.

Changes in Tax Credits in 2023

Electric vehicle sales were up nearly 70% in 2022. If you purchased an electric vehicle, you should know that the federal government’s tax credit has changed. 

The IRA (Inflation Reduction Act) has changed the electric vehicle tax credit, applying a lower credit for used green vehicles while providing a maximum of $7,500 for new green vehicles.

Those who purchased such a vehicle before the IRA’s effective date of August 16, 2022 can still claim the credit based on the applicable rules. Bring your written electric vehicle sales contract to our office, and we’ll help you maximize your tax credit.

Will Tax Changes Lead to a Smaller Refund?

The IRS notifies the taxpaying public that refunds might be slightly less than usual in 2023 due to changes to the tax system in 2022. The standard deduction has increased, meaning it is that much more challenging to minimize one’s tax burden through charitable deductions.

Another change for the new year is the elimination of the enhanced Child Tax Credit. The credit expanded in 2021 from $2K per child to nearly $4K per child. Furthermore, some of the credit was provided through advanced payments across 2021. 

Fast forward to 2022, and the credit returned to $2K for each child. This means the figure parents are permitted to claim for 2022 will be less than most anticipate.

Schedule a Consultation With Sensible Services ABC

Our tax preparation specialist is at your service. Reach out to our accounting and tax services team today to learn more about how we can help. We’re here to serve clients in Hammond, LA and others nationwide.

You can schedule an appointment by dialing (985) 222-2088. You can also click or scan the QR code below to request your personal tax portal invitation today!