Rogers Financial Agency

Open Filing Season for 2023 Tax Returns (2/2)

When this year's tax season officially opens on January 29, it will feature several improvements to IRS services. Two key upgrades relate to digital form submission and options for taxpayers to access their IRS account information online.

Enhancements to IRS paperless processing systems include the addition of 20 more tax forms to e-filing platforms, and new ways to respond to IRS letters online. Taxpayers with online IRS accounts will also discover new account features, including options to schedule and cancel future payments, and to securely save bank information for greater convenience.

A tax professional can help you file your tax return and any other required forms electronically, to save resources and ensure the fastest possible refund delivery.

Quarterly Estimated Tax Payments - Reminder

If you are making quarterly estimated tax payments to the IRS, the due date for the September 1st - December 31st, 2023 quarter of year is Monday, January 15th, 2024.

For payments made using IRS Direct Pay, you can make payments until 11:45PM EST, and for payments using a credit or debit card, payments can be made up to midnight on the due date.

Preparing for Tax Filing Season

A new year and filing season for 2023 tax returns will soon be upon us. A little advance preparation can help prevent stressful tax time surprises. Here are some reminders of important steps you can take now to set yourself up for a more worry-free tax filing:

- Do one last withholding checkup. Time is running out to adjust your paycheck withholding to make sure you have paid enough tax throughout 2023. You can use the IRS Withholding Estimator tool (link below) to make sure your numbers are on track.
- If your name changed in 2023, report the change to the Social Security Administration (link below) as soon as possible.
- Locate your bank account information, including both your account number and the bank routing number, so you can receive your tax refund by direct deposit.
- Watch for year-end income statements, especially in late January and early February. These statements may include W-2 forms, along with 1099-NEC, 1099-MISC, 1099-INT, 1099-G and other 1099 forms. Note that some of these forms may come by mail, while others may be sent to you electronically. Keep all of the forms together and organized.
- Organize records for tax deductions and credits. These records may include Form 1095-A (Health Insurance Marketplace Statement), tuition statements (Form 1098-T), medical bills, mortgage interest statements, and home energy improvement or clean vehicle receipts or invoices.

IRS Withholding Estimator: https://www.irs.gov/individuals/tax-withholding-estimator
Social Security Administration (SSA): https://www.ssa.gov/

Saver's Credit for 2023 Retirement Plan Contributions – Did You Know?

The Retirement Savings Contributions Credit, commonly known as the Saver's Credit, helps low- and middle-income taxpayers set aside money for retirement. Eligible taxpayers may claim a tax credit of up to $1,000 (up to $2,000 for joint filers) for their contributions to traditional or Roth IRAs, or to certain workplace retirement arrangements like 401(k) and 403(b) plans.

Eligibility for the Saver's Credit depends on a taxpayer's adjusted gross income (AGI) and filing status. The 2023 AGI limits are $73,000 for married couples filing jointly, $54,750 for head of household filers, and $36,500 for single filers and married individuals filing separately. Those with lower incomes may receive a larger credit amount. Note that some taxpayers qualify to claim both the Saver's Credit and the tax deduction for traditional IRA contributions.

In order to receive the credit for 2023, you must contribute to a 401(k), 403(b) or similar qualified plan by December 31. However, you may make 2023 IRA contributions through April 15, 2024. A tax professional can help you determine whether you qualify to claim the Saver's Credit, and if so, help you get the greatest benefit from the credit.