Benjamin Franklin once wisely said, “In this world, nothing is certain except death and taxes.” Each year, Americans sort through tons of paperwork and crunch the numbers to figure out if they owe taxes or if they are due a refund. The end of January signals the beginning of tax season for filing last year’s taxes. Ramsey Solutions filmed a video where they go over all the new laws for this year’s taxes. Enjoy some great tax season tips for 2023.
The tax filing deadline for 2023 is Tuesday, April 18th. If for whatever reason you need an extension, then your deadline is October 16th. However, you must request an extension.
The standard deduction increased for the 2022 tax year. A single filer’s standard deduction is $12,950, which has increased by $400. If you are married filing jointly, then your standard deduction is now $25,900. This has increased by $800. In addition, tax brackets have also changed. The government increased them due to inflation. To see the current tax brackets, click here. To read more about this year’s taxes, click here.
In the video, George and Jade really discuss the truth about tax refunds. Their advice is to get your refund as close to zero as possible. Otherwise, if you are receiving thousands of dollars as a refund, then you have loaned the federal government at 0% interest. Also, they discuss how we are likely to spend the refund frivolously because we perceive it as free money. Instead, use the extra money in your paycheck throughout the year to pay down debt, invest, buy groceries, etc.
In the video, George and Jade also discuss deductions and credits, which can drastically change your taxable income. They give many tax tips such as funding your IRAs and more. I hope you found this post and video for tax season tips for 2023 helpful. Here is a link for Benefits of Filing Early and a Tax Prep Checklist. Try to have fun this year with the inevitable–paying taxes.