Tax season is in full swing, and with the April 15 deadline approaching, there are some important tips to keep in mind. This year’s filing season is running smoother than last year, but there are still new twists to be aware of, including crypto reporting rules, new tax credits for electric vehicles, and changing start dates for required retirement distributions. Forbes offers tips on how to file for free, report various types of income, and correct any mistakes on your tax forms.
If you can’t file your tax return by the April 15 deadline, don’t panic – simply apply for an automatic extension, which gives you an extra six months to file. Getting an extension won’t raise your risk of an audit, but filing an inaccurate return might. If you’ve already filed and are waiting for a refund, you can track the status of your refund using the IRS’ Where’s My Refund? tool. The tool will provide information on when your return was received, approved, and issued.
Taxpayers should also be aware of different tax deadlines and extensions, as well as whether they are required to file a 1040 based on their income, filing status, and age. You may need to file if you’re eligible for certain tax credits, even if you’re not required to. E-filing is recommended over paper filing, as it’s more secure and accurate. If you choose to file on paper, pay close attention to addresses and due dates, and be prepared for longer processing times.
New developments in tax law for 2023 include expanded reporting requirements for 1099-K forms, proposed changes to the child tax credit and state and local tax deductions, and new tax credits for electric vehicles and green purchases. The IRS has delayed the implementation of the expanded 1099-K reporting requirement to a later date. Taxpayers should also be aware of changes in retirement distribution rules and higher contribution limits for retirement accounts.
It’s important to report any errors on your tax return early to avoid delays in processing and potential IRS notices. If you receive a form with incorrect information, such as a Form 1099-INT reporting more interest than you received, take steps to get the form corrected by the payer. In some cases, explaining the discrepancy on your tax return may be necessary. Taking proactive steps to ensure the accuracy of your tax return can help avoid audits and other complications down the line.
