It's tax season, and the IRS has set the filing deadline for Tuesday, April 18, 2023. That's because the usual April 15 filing date falls on a Saturday, and the following Monday is the District of Columbia's Emancipation Day holiday. Taxpayers can expect to receive their refunds within 21 days of filing if they file electronically and opt for direct deposit. Those filing by paper should expect to wait at least four weeks before funds hit their account, and longer if they choose to receive a check in the mail.
In addition to filing early, the IRS encourages taxpayers to opt for direct deposit to receive their refunds faster. This is cheaper than receiving a paper check, as every paper check issued costs US taxpayers more than $1, while each direct deposit only costs a dime. The IRS also allows taxpayers to split their refunds between two or three financial accounts, which can be beneficial if one is used as a savings account.
The IRS also offers a “Where’s My Refund?” feature, which can be used to track the status of a refund regardless of whether the return was filed by mail or electronically. To use the IRS tracker, taxpayers need to provide their Social Security number or Individual Taxpayer Identification Number, their filing status, and their refund amount.
The IRS allows taxpayers to deduct certain expenses, such as the Child and Dependent Care Tax Credit and the Child Tax Credit. However, some of the changes to these credits in 2021 do not roll over to 2022. It is important for taxpayers to review the most recent IRS filing season statistics for the current tax year to make sure they know the most up-to-date deductions and credits they can claim.
Taxpayers should also be aware that they can use the “free file” option on the IRS website if they earned $73,000 or less last year. Additionally, resources like Cash App taxes and Turbo Tax offer free filing options.
Navigating the changing tax rules can be confusing, but with some preparation and the right tools, taxpayers can make sure they get their refund as quickly as possible. The IRS encourages taxpayers to file and choose direct deposit as their refund option, and to use the “Where’s My Refund?” feature to track their refund status. By following these tips, taxpayers can make sure they get the most out of their filing season.
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