The Internal Revenue Service -IRS- has made several announcements recently. Apart from the one that has to do with stimulus cheques, they have informed US citizens of the beginning of the new tax filing season. Despite the fact that many taxpayers are aware of the new date, not everyone knows it. There are some who still ignore January 23 was the first date to file their tax return.
Not only is it important to know the date it starts, but you also need to know that when the deadline is. Bear in mind that this year’s deadline to pay your taxes and file your tax return is on April 18, 2023. It is essential to pay taxes when they are due in order to avoid penalties. In case you need an extension, you will have until October 16, 2023, to file. Do not forget to pay the tax owe due by April 18 though.
What about stimulus cheques and new IRS information?
According to the Internal Revenue Service, your tax refunds may not be as high as you may expect. Do not forget that the last tax refund may have been higher, so you may think this year’s going to be as much as that. There are two main reasons why the refund will be smaller. Keep in mind that there were two important stimulus payments.
This extra money came as a tax credit when taxpayers filed their 2021 tax returns last year. As it was such a big amount for many people, there might be a letdown for those who could benefit from it. Even if you do not owe any taxes, your refund may seem low after having received a higher one. So, be ready to get a smaller one possibly.
Why is important to work out your tax refund?
When it comes to managing your money, it is essential to foresee expenses and bonuses. But if your expectations fail, it may be a blow to your finances. Many American families live on a tight budget and important changes may affect their economy. That is why is key to know that you may not get a tax credit as you did due to the stimulus checks.
There are might be some states that are still paying their stimulus cheques into 2023. Therefore, you will be lucky if you can get them now with the high inflation and skyrocketing prices. You may want to use a tax refund calculator to see if the lack of stimulus checks has affected your refund a lot.