Tax season is here again and there are some significant changes this year. We spoke with some local experts about what we can expect to see.
Monday was the first day of the 2023 tax season and the IRS is now accepting and processing our 2022 tax returns. But experts tell us that we’re going to see significantly smaller refunds this year.
“This year they’re going to see smaller refunds because we didn’t have any stimulus checks in 2022 and we no longer have that child tax advanced credit, So, the credit last year was giving people 3600 dollars and 3000 extra dollars so they’re no longer going to see that. So, we’re kind of just going back to pre-Covid.”
There are also some new rules that should be taken into account.
“There’s a significant change that will affect us and our clients that if clients aren’t aware and aren’t prepared, The mileage rate for business expenses went up to sixty-two and a half cents a mile effective July 1st. Last year you were able to deduct 300 dollars for a single person or 600 dollars for a married couple if you didn’t itemize for charitable contributions you didn’t itemize. That’s gone for this year that was a one-time deal and that’s completely gone.”
But not all things are bad this year
“The standard deduction for those who don’t itemize their deductions has increased this year, For a single person it’s up 13,850, for a married couple it’s 27,700. That’s up a couple thousand dollars from last year.”
We asked if tax payers should do anything different this year.
“They should file their taxes as they normally should, I would advise that everyone make sure that they have all of their tax information and especially their W-2’s. I would just basically advise that if you started a new job that you make sure that you’re filling out your W-4 form correctly because the law has changed so you want to make sure that you’re taking the right deductions and that they’re withholding enough money from your paychecks so you actually receive a refund or you don’t owe.”