LATEST TAX UP-DATES 2023
Post Date: 01/23/2023
TAX LAW AND NEWS
Individual Tax Provisions that No Longer Apply
Non-itemizer charitable cash contributions deduction ($300 addition to the standard deduction)
Mortgage insurance premiums no longer qualify as mortgage interest on Schedule A
The Self-Employed Credit for Sick and Family Leave (Form 7202)
Credit for Health Insurance Costs for Eligible Individuals
Credit for Two-Wheel Plug-in Electric Vehicles
Child Tax Credit
The Child Tax Credit is $2,000 for each qualifying child with $1,500 eligible to be refundable as the additional child tax credit.
The age limit for a qualifying child is under the age of 17.
The advance of the Child Tax Credit is no longer applicable for Tax Year 2022.
Child and Dependent Care Credit
This credit is nonrefundable.
Maximum qualifying expenses are $3,000 for one qualifying person and $6,000 for two or more qualifying persons.
Maximum percentage is 35% for taxpayers with $15,000 or less of AGI. Percentage gradually decreases for AGI between $15,000 and $43,000 until it reaches 20%.
Earned Income Tax Credit for Taxpayers Without Children
Qualifications and limits are what they were before 2021 as follows:
Taxpayer must be at least age 25 and under age 65 at the end of 2022
AGI cannot be greater than $16,480 ($22,610 for MFJ)
Monday, Jan. 23, 2023, is the beginning of the nation’s 2023 tax season; on this date, the IRS will begin accepting and processing the tax year 2022 returns.
The IRS has expanded line 1 on the Form 1040 to show what were formally write-in amounts on separate lines on Form 1040. Form 1040, line 1 is now broken down as follows:
Line 1a Total amount from Form(s) W-2, box
Line 1b Household employee wages reported on Form(s) W-2
Line 1c Tip income not reported on line 1a
Line 1d Medicaid waiver payments not reported on Form(s) W-2
Line 1e Taxable dependent care benefits from Form 2441, line 26
Line 1f Employer-provided adoption benefits from Form 8839, line 29
Line 1g Wages from Form 8919, line 6
Line 1h Other earned income
Line 1i Nontaxable combat pay
Line 1z Total of lines 1a – 1h
More than 168 million individual tax returns are expected to be filed, with the vast majority coming before the April 18 tax deadline; in fact, there are three extra days to file this year due to the calendar.
April 18 tax filing deadline in 2023
The filing deadline to submit 2022 tax returns or an extension to file and pay the tax owed is Tuesday, April 18, 2023, for most taxpayers. By law, in Washington, D.C., holidays impact tax deadlines for everyone in the same way as federal holidays. The due date is April 18, instead of April 15, because of the weekend and the District of Columbia’s Emancipation Day holiday, which falls on Monday, April 17. Taxpayers requesting an extension will have until Monday, Oct. 16, 2023, to file.
Key filing season dates
There are several important dates taxpayers should keep in mind for this year’s filing season:
• Jan. 13: IRS Free File opens
• Jan. 17: Due date for the tax year 2022 fourth quarter estimated tax payment.
• Jan. 23: IRS begins 2023 tax season and starts accepting and processing individual 2022 tax returns.
• Jan. 27: Earned Income Tax Credit Awareness Day to raise awareness of valuable tax credits available to many people – including the option to use prior-year income.