The IRS has announced that they will begin accepting and processing 2023 tax return on January 29. With this in mind, here are some tax season questions and answers that we generally receive at this time of year.
Tax Season Questions and Answers
1. What are the deadlines for 2024?
For most taxpayers, Monday, April 15, 2024 is the filing deadline to submit 2023 returns or file an extension. Due to state holidays, taxpayers living in Massachusetts or Maine have until April 17th. Additionally, taxpayers who reside in a federally declared disaster area may have additional time file.
2. When should I file?
To prevent tax identity theft, you may want to file earlier than the deadline date.
3. Are there other benefits to filing early?
Besides providing some protection against tax identity theft, another reason to file early is that you’ll get your refund sooner. Of course, that depends on if you are due a refund. According to the IRS, they will issue refunds within 21 days.
This time may be soon if you receive a refund by direct deposit into a bank account or if you file electronically. In addition, if you choose direct deposit it avoids the possibility that a refund check could be returned to the IRS, stolen, caught in mail delays or lost.
4. When should I receive my W2s and 1099s?
Depending on your employment type, you will need your Forms 1099 and W-2. January 31, 2024 is the deadline for businesses to file Form 1099, employers to file 2023 W-2s. If you have not received a 1099 or W-2 by early February, first contact your employer or vendor that should have issued it. If that doesn’t work, as us what your next steps should be.
5. What is tax identity theft?
In general, a thief can claim a fraudulent refund early in the filing season by using another person’s information to file a fake tax return. And the legitimate taxpayer is unaware until they try to file a return.
The IRS rejects legitimate taxpayers return because someone with the same social security number has already filed for the tax year. Although the victim shouldn’t have a problem proving that his or her return is the valid one, the process can be frustrating and time consuming.
So, if you file early, the tax return filed by a potential thief will be rejected.
6. If I file an extension, when is my return due?
You will have until October 15, 2024 to file if you requested an extension. But you should be aware that an extension of time to file does not mean you have an extension to not pay your taxes due on time. As such, to avoid penalties, you should pay estimate and pay taxes owed by the April 15th deadline.
7. When can you prepare my return?
We hope these tax season questions and answers have been helpful and we recommend contacting us as soon as possible for a tax preparation appointment. Separate penalties apply for failing to file and pay on time, and they can be quite severe. Let us help ensure you file an accurate, timely return and receive all the tax breaks to which you’re entitled.
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