Tax season has officially started, but there are some changes this year that could have some big impacts on your returns.
Both the Illinois Department of Revenue and the Internal Revenue Service will begin accepting income tax returns starting Monday.
Here's what you should know about the 2023 tax season.
What is the deadline to file my taxes and why is it different this year?
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The deadline to file taxes for most Americans is set for Tuesday, April 18. While Tax Day is typically designated as April 15, this year's deadline differs due to April 15 falling on a Saturday.
Monday, April 17 marks the Emancipation Day holiday observed in Washington, D.C., leading to the 2023 deadline to be set for April 18.
What should I know before filing my taxes?
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The IRS expects more than 168 million individual returns will be filed this tax season.
While tax season is often overwhelming for many, the Illinois Certified Public Accountant Society, or CPA Society, has offered a couple of tips for taxpayers to help simplify and speed up the process of filing their taxes.
- Gather all your information prior to filing
Before starting your tax return, the Illinois CPA Society advises taxpayers to gather all necessary information ahead of time, including 2022 tax records as well as Social Security numbers, Individual Taxpayer Identification Numbers, and Adoption Taxpayer Identification Numbers.
For those that are previously confirmed victims of tax-related identity theft should also have their IRS-issued Identity Protection Personal Identification Numbers ready. Taxpayers who have proactively requested one should also have their number on hand before filing.
The Illinois CPA Society notes that for some taxpayers, this may mean waiting until mid-February to early March to ensure that all income and tax-related documents have been received.
These include 1099 forms from banks and other payers reporting unemployment compensation, dividends, pension, annuity, or retirement plan distributions, investment income and other earned income.
- File electronically and use direct deposit
According to the Illinois CPA Society, both filing electronically and using direct deposit are important steps to ensure that both your tax return and refund payment are processed with minimal delays.
The IRS has advised taxpayers to avoid filing paper returns whenever possible, adding that filing electronically is fastest, easiest and safest way to file a tax return.
“Taxpayers are encouraged to file electronically as early as possible in the tax season and choose direct deposit in order to ensure the fastest processing and issuance of any refunds,” IDOR Director David Harris said in a statement. “I encourage taxpayers to try My Tax Illinois, our free online account management program that has been recently updated and allows taxpayers to file their individual income taxes electronically. Electronic filing is also available through third party software or with most tax preparers.”
Can I file for an extension on my taxes?
While the deadline for most taxpayers to file their returns is April 18, taxpayers who request an extension will have until Oct. 16 to file.
If taxes are owed however, any remaining taxes must be paid by April 18.
When will I receive my refund?
According to the IRS, taxpayers who file electronically and use direct deposit should receive their refund payments within 21 business days, as long as there are no issues with the return.
Taxpayers who are receiving refunds that include the Earned Income Tax Credit or Additional Child Tax Credit cannot be issued their refunds before mid-February due to the Protecting Americans From Tax Hikes Act of 2015, which provides additional time for the IRS to ensure fraudulent refunds are not issued.
For those in Illinois, the IDOR offers a Where's My Refund? page for residents to check on the status of their refund.
Why might my refund be smaller this year?
"Refunds may be smaller in 2023," the IRS said in a November release. "Taxpayers will not receive an additional stimulus payment with a 2023 tax refund because there were no economic impact payments for 2022. In addition, taxpayers who don’t itemize and take the standard deduction, won’t be able to deduct their charitable contributions."
In addition, amounts for the Child Tax Credit and Dependent Care Credit change yearly, with both seeing changes this year.
What else has changed?
IRS leadership says taxpayers should expect a smoother filing season this year.
“We’ve trained thousands of new employees to answer phones and help people. While much work remains after several difficult years, we expect people to experience improvements this tax season,” said Acting IRS Commissioner Doug O’Donnell.
The IRS has most recently added 5,000 new customer service representatives who were trained in taxpayer rights and technical account management issues and is chipping away at the hundreds of thousands of unprocessed returns from last tax season.
