You can now file your 2023 tax returns electronically or by mail if needed. It’s recommended to gather all necessary documents and information before filing to ensure accuracy. The IRS also offers various online tools and resources to assist with tax filing, including free file for those with low to moderate income. April 18, 2023 is the tax filing deadline for most Americans, unless a disaster-related extension has been granted by the IRS. For those affected by the California storms, the deadline has been extended to May 15, 2023.
If you need more time to file, you can request an extension of time to file by filing Form 4868 with the IRS, but this extension is not an extension of time to pay, and you may still incur a late payment penalty on any taxes not paid by the original due date of your return. There are many options available for e-filing your taxes, including IRS Free File and TurboTax, among others. The best option for you may depend on factors such as your income, budget, and the complexity of your tax return.
File your taxes in 2023
To file your taxes in 2023, you will need the following information: Personal and financial information, including Social Security number(s), W-2 form(s) from your employer, 1099 form(s) for any other income received, bank account information for direct deposit of any tax refund. Deductions and credits information, including charitable donations, medical expenses, student loan interest, etc.
Once you have all the necessary information, you have a few options to file your taxes:
- IRS Free File: The IRS offers free tax preparation and e-filing for eligible taxpayers with adjusted gross income (AGI) of $72,000 or less.
- Paid tax preparation software like TurboTax, H&R Block, or others
- Hire a tax professional to complete and file your return on your behalf.
Regardless of the option you choose, make sure to double-check your return for accuracy and ensure that all required information is included before submitting. Keep in mind that while an extension of time to file is available through Form 4868, an extension to pay any taxes owed is not guaranteed.
E-filing has several advantages, including faster processing of your return and a quicker refund. So, it’s good to consider starting early and choosing the right option for you to ensure a smooth and efficient tax filing process.
TurboTax pricing and operation
TurboTax is one of the leading tax preparation software options, with a range of services for both self-prepared returns and those done with the help of a tax professional. The Free Edition service allows for free e-filing of a federal return with only a 1040 form.
However, if additional forms are required, such as itemized deductions or schedules, the user may need to upgrade to a paid version, such as the Deluxe tier. There is currently a lawsuit against TurboTax’s parent company, Intuit, regarding its free tax filing promotions, which Intuit denies. The Deluxe tier is currently on sale for $39.
TurboTax offers several other paid options in addition to its Deluxe tier, including Premier ($69) and Self-Employed ($89). The Self-Employed option is designed for taxpayers reporting self-employment income and expenses. Additionally, all of the do-it-yourself options, including Deluxe and higher, have additional fees for e-filing state tax returns, though the user can avoid the fee by printing out their state return and mailing it in.
There are a few benefits to using a paid TurboTax package over IRS Free File. The software can assist in finding missed deductions and provide information about audit risk. If a more guided experience is desired, TurboTax also offers its Basic, Deluxe, Premier, and Self-Employed tiers with access to a tax professional for advice or to have the tax professional complete the return. The option with advice is called TurboTax Live, while the more expensive option with full service is called TurboTax Live Full Service.