Filing An Income Tax in 2023 – Here’s What You Need To Know

Everything you need to know about income tax rebate 1

Many people are now overwhelmed to file tax returns. Luckily, free help is offered to help filers navigate the process.

The final date to file personal income taxes was changed to April 18 in 2023 due to the April 16 celebration of DC Emancipation Day. The information was disseminated by the Internal Revenue Service.

Taxpayers are encouraged by the IRS and financial advisors to track their income statements including the income received from part-time work.

If taxpayers received more than $600 from a third party, they need the 1099-K forms and W-2 forms to file a simple return. Those required to submit the 1099-K form need to wait until February to submit their tax returns due to employers having until January  31 to send the form.

Due to the pandemic adjustment, 2023 refunds are smaller than the increased key tax credits after 2019.  An amount of $2,000 per dependent is set to be received in the Child Tax Credit. The amount is lower than the last year’s worth $3,600.

There is a decrease in the Earned Income Tax credit from $1,500 to $500 while the Child and Dependent Care Tax Credit decreased from $8,000 to $2,100.

The Inflation Reduction Act gave taxpayers additional perks despite the drop in refunds.

The IRS offered Premium Tax Credits which many people may still be eligible for. This offer is intended for people having an income 400% higher than the federal poverty line. For instance, $111,000 worth of income per household is needed.

WHERE TO FILE FOR FREE

Costless assistance is provided by several organizations. Qualifications are determined based on income and demographic.

For low-income people who are 50 years old and higher are offered AARP free filing assistance.

For people with an income of $58,000 or less, free filing is offered by The United Way. Free self-filing is also offered for people with less than $73,000 income.

For people making less than $58,000 without access to a computer and internet, filing assistance is offered by Prince George’s County Community College, a locally based organization. Before filing, make sure to meet the required standards forms.