Are you preparing to face your 2022 income tax return? You have a lot of company. There is approximately one month left in the current tax filing season, which began on January 23, 2023 and will run through April 18, 2023 and the latest IRS data indicates that, as of March 10, 2023, the IRS has received about 40% of the 168 million individual tax returns they expect to see this season.
To help the other 60%, we’ve got some tax filing tips below, including why filing for an extension might be a smart move. If you have already filed your return, here is a guide on tax refunds. Those topics, as well as the types of information you can find on IRS.gov. and tips for dealing with the IRS, were covered in our recent webinar (for subscribers only).
The IRS has upped its online game in recent years to include opportunities to check your account online, pay your tax bill, and find out the status of your tax refund. Despite that, web visits to IRS.gov remain low. The IRS has reported just 318,555,000 visits in 2023, more than 20% less than the previous year.
Reduction of the order book
This is likely because the IRS has made progress on its order book. the IRS Has confirmed that it has processed all paper and electronic individual returns received before January 2023 and is opening the mail within normal timeframes. They have processed all returns received for tax year 2021 or earlier if those returns were free of errors or did not require further review. As of March 4, 2023, the IRS reported 2.27 million individual unprocessed returns, including 2022, 2021 returns that need review or correction, and prior-year returns filed late.
Current Presentation Statistics
So far, the IRS has received 63,442,000 individual returns in 2023, compared to 63,474,000 during the same period in 2022, a slight decrease. However, the IRS continues to process individual income tax returns faster than last year: 63,191,000 individual returns in 2023, compared to 61,962,000 in 2022.
As taxpayers pick up the pace of filing taxes, which traditionally happens as we get closer to Tax Day, here are some tips to keep in mind:
- Decelerate. Unless you’re reading this on April 19, you’re still not late. There’s still time. Do not get excited and fly on your return: you will only be wrong.
- Check your numbers. The IRS cites missing or inaccurate Social Security numbers, math errors, and incorrect bank account numbers as some of the most common taxpayer mistakes do on your tax returns.
- Choose the correct marital status. The IRS also highlights choosing the wrong filing status as a routine error. For more information, see this article on Choosing Between Married Filing Jointly and Married Filing Separately, or click IRS Publication 501.
- Make sure you have all your forms. You should have received most of your forms by now. Employers must provide you with a Form W-2 by January 31, 2023; this is how you can read yours. January 31 is also the due date for most 1099 forms. But keep in mind that some forms, such as those for pass-through entities or certain retirement accounts, may not have arrived yet. Do not file your return until you have confirmed that you have all your documents in line.
- Don’t skip the questions. Be sure to answer all of the questions on your tax return, including the digital asset/cryptocurrency checkbox on the front of your Form 1040. Sometimes something as simple as not checking a yes/no box can delay the processing of your your statement.
- Watch out for updates. It’s easy to make mistakes when figuring complicated credits like the earned income tax credit, child and dependent care credit, and child tax credit, especially when there are changes in the law.
- Do not forget the changes related to life.. Did she get married or divorced? She had a baby? Did she say goodbye to a child who moved to a new apartment? Did she buy or sell a house? All of those things can make a difference in your results. Be sure to share that information with your tax professional or make those changes to your self-prepared return.
If you are not yet ready to file, consider requesting an extension. Just remember that an extension of time to file is not an extension of time to pay; if you expect to owe, send your payment before the due date.
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