The 2023 tax season is here! The Internal Revenue Service (IRS) started accepting tax returns on January 23rd, 2023. See below for four quick tips to ensure that your individual filing goes smooth this year.
1. The Earlier you Start, the Better
Avoid delays by getting ahead where you can, you can speed the process along by:
- E-filing your returns to avoid mail delays
- Setting up direct deposit with the IRS
- For more complex tax returns, gather your information and connect with a tax professional sooner rather than later.
2. Be Sure your Returns are Accurate
Review your prior year return to look for sources of income you had last year – brokerage accounts, IRA distributions, royalty income, and confirm whether you have income from those sources this year. Also, think back to changes this year from last year – moving, having children, opening new bank accounts, investing in Crypto, etc.
3. Plan your Extensions if Needed
Avoid the penalties from the IRS by planning to file any extensions ahead of the April 18th deadline (normally due April 15th, but due to the weekend and a holiday in DC, the deadline is delayed this year) to move your deadline to October 16th. Remember that an extension gives you additional time to file your return, but any tax owed is still due by April 18th.
4. Report Investments Accurately
Report any profits and losses on your investments for capital gain taxes. This can be anything from selling stocks, mutual funds, cryptocurrency, real estate or other investments.
IRS Helpful Resources
Contact An Advisor
Regardless of your tax needs, Whitley Penn has a knowledgeable and experienced team of tax professionals that are ready to work with you. Get in touch with a Whitley Penn professional today for more information. www.whitleypenn.com/contact-us
Toby Cotton
Partner-In-Charge of Tax