Aryana Noroozi |
The 2023 tax filing season officially began on Jan. 23. The IRS is now accepting and processing 2022 returns.
The IRS projects over 168 million individual tax returns will be filed, most coming before the April 18 tax deadline.
In August 2022, the Inflation Reduction Act was passed, providing funds to the IRS to allow for an addition of 5,000 new telephone assistants and increased in-person staff to help support taxpayers.
“This filing season is the first to benefit the IRS and our nation’s tax system from multi-year funding in the Inflation Reduction Act,” said Acting IRS Commissioner Doug O’Donnell. “With these new additional resources, taxpayers and tax professionals will see improvements in many areas of the agency this year.”
O’Donnell said that while much work remains to be done after several difficult years, the IRS expects taxpayers to experience improvements while they develop new long-term efforts.
The law requires that federal holidays as well as Washington, D.C. holidays impact tax deadlines for the entire nation. As a result, the deadline to submit 2022 tax returns is April 18, instead of April 15, giving taxpayers three extra days because of the District of Columbia’s Emancipation Day holiday.
Taxpayers requesting an extension will have until Monday, October 16, 2023 to file.
Tax Extension for Californians Affected by Winter Storms
Californians impacted by winter storms are now eligible to claim a deduction for a disaster loss and will have more time to file their taxes. The California Franchise Tax Board (FTB) has extended the filing and payment deadlines for individuals and businesses in California impacted by the storms until May 15, 2023.
“Whether it’s more time to file your taxes or get a deduction, this tax relief will support Californians who have been impacted by the ongoing storms battering the state,” said Governor Newsom. “California is working swiftly to get people back on their feet and help communities recover.”
This relief applies to deadlines falling on or after January 8, 2023, and before May 15, 2023, including the 2022 individual income tax returns due on April 18 and the quarterly estimated tax payments, typically due on January 17, 2023 and April 18, 2023.
The following can utilize this extension: Individuals whose tax returns and payments are due on April 18, 2023; quarterly estimated tax payments due January 17, 2023 and April 18, 2023; and business entities whose tax returns and payments are due on March 15, 2023
How to File a Deduction for Disaster Loss:
Taxpayers affected by a presidentially declared disaster may claim a deduction for a disaster loss.
A disaster loss can be claimed when filing either an original or amended tax year 2022 tax return.
The FTB provided instructions for this process which state, “When filing their return, taxpayers should write the name of the disaster in blue or black ink at the top of their tax return to alert FTB. If filing electronically, taxpayers should follow the software instructions to enter disaster information. If a taxpayer receives a late filing or payment penalty notice related to the postponement period, they should call the number on the notice to have the penalty abated.”
Additional information and instructions are available in FTB Publication 1034, 2022 Disaster Loss: How to Claim a State Tax Deduction.
Disaster victims are eligible to receive free copies of their state returns to replace those lost or damaged. To do so, they should use form FTB 3516 and write the name of the disaster in blue or black ink at the top of the request.
For a complete list of all disasters declared in California, see the chart on FTB’s disaster loss webpage.
Most refunds are issued in less than 21 days; EITC refunds for many available starting February 28
The IRS anticipates most taxpayers will receive their refund within 21 days of when they file electronically, provided they choose direct deposit and there are no issues with their tax return. Taxpayers can check Where’s My Refund? on IRS.gov for their personalized refund status.
However, the IRS cannot issue a refund that includes the Earned Income Tax Credit (EITC) or Additional Child Tax Credit (ACTC) before mid-February. This is due to the 2015 PATH Act law which Congress passed to provide additional time to allow the IRS to stop fraudulent refunds from being issued.
Where’s My Refund? should show an updated status by February 18 for most early EITC/ACTC filers. The IRS anticipates that most EITC/ACTC related refunds will become available in taxpayer bank accounts or on debit cards by February 28 if taxpayers choose direct deposit and there are no other issues with their tax return.
You can still file 2022 returns even if you are awaiting the processing of previous tax returns
The IRS has processed all paper and electronic individual tax year 2021 returns received before November 2022 that didn’t require error-correction or further review. They continue to work on the remaining tax returns in these categories. “This work will not impact tax refund timing for people filing in 2023, but the IRS continues to urge people to make sure they submit an error-free tax return this tax season to avoid delays,” said the IRS in a press release about the 2023 filing season.
Key Dates
January 13: IRS Free File opens
January 17: Due date for tax year 2022 fourth quarter estimated tax payment
January 23: IRS begins 2023 tax season and starts accepting and processing individual 2022 tax returns
January 27: Earned Income Tax Credit Awareness Day to raise awareness of valuable tax credits available to many people – including the option to use prior-year income to qualify
April 18: National due date to file a 2022 tax return or request an extension and pay tax owed due to the Emancipation Day holiday in Washington, D.C.
October 16: Due date to file for those requesting an extension on their 2022 tax returns.