Tax News Blog

Crypto Tax Filing in 2023

Posted by admin on January 26, 2023
Last modified: January 26, 2023

How to Prepare and Report your Crypto Gains and Losses when filing Crypto Tax

Want to know the best way to compute crypto tax for profits and losses? It all depends on what country you reside in. In America, digital currencies are classified as a form of property, with both short-term and long-term capital gains regulations that apply. For those in the United States, understanding your tax liability when it comes to crypto can be a complex process. Crypto is treated as property for taxation purposes, which means gains and losses must be calculated according to long-term and short-term capital gain rules.

When filing taxes, it is fundamental to accurately calculate crypto gains or losses. Two elements play a major role in this: the holding period and realized profits or losses. It is, therefore, essential to understand these two components when computing your crypto tax.

When it comes to taxation, what are the rules regarding cryptocurrency?

In the United States, the taxation of crypto is similar to that of other forms of property. Therefore, both short-term and long-term capital gains regulations are applicable. Regarding taxes on crypto earnings, the rate is equal to that imposed on profits made from investments in stocks.

When determining one’s crypto taxes, both gains and losses must be taken into account. To help with this process, a specialized tax calculator can be utilized. Our tax calculator is perfect for this purpose.

Again, when filing taxes, it’s important to consider your crypto gains or losses carefully. This requires a thorough understanding of two primary components: realized gains/losses and the holding period. Calculating these accurately will ensure that you have precise figures when completing your tax return.

Factors to consider when calculating your crypto tax?

crypto tax
crypto tax

When it comes to filing crypto taxes, there are two key components that must be taken into account. Specifically, the calculation of crypto tax requires an awareness of how cryptocurrency is taxed as either short- or long-term capital gains.

When engaging in crypto trading or sales within the U.S., the rate of tax is determined by two key factors

– your realized gains (or losses) and 

– length of time you held a certain cryptocurrency prior to trading or selling it (the holding period).

Beginning one day after a purchase or transaction of cryptocurrency, and completing when you trade or sell it, constitutes what is known as a ‘holding period.’ Additionally, making purchases with crypto sets in motion a taxable event.

Crypto Tax Filing Example

In this case, after buying $10,000 worth of ETH, it was exchanged for $20,000 in BTC a month later. This created a taxable gain of $10,000. The taxable gain is $20,000 − $10,000 = $10,000. After just two months, this amount had increased by another $30,000 when the value of your BTC rose to $50,000. From that point, it could be used to purchase GameStop (GME) stocks with a total taxable short-term capital gain for the year being recorded as $30,000. Here the taxable gain is $50,000 − $20,000 = $30,000.

Best ways to calculate crypto tax with PriorTax and our Tax Professionals

Figuring out your crypto taxes can seem daunting at first, but here at PriorTax, we make it easy! We provide an account you can use to calculate your crypto gains and taxes. Alternatively, you can leave all those calculations to our experienced team of professionals. Either way, you can file your crypto taxes with us.

Maintaining accurate records is essential for those who own cryptocurrency. A crypto tax calculator can help calculate realized gains or losses and their respective tax implications to make the job easier. In addition, such calculators can provide a great deal of insight into how much one’s finances are affected by trading cryptocurrency.

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Category: Tax News, Tax Tips and Tricks, Tax Year 2022
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W2 Tax Form for 2022

Posted by admin on January 20, 2023
Last modified: January 18, 2023

It’s almost time for 2023 tax season to begin, and with it comes an important date – Jan. 23, 2023 – which marks when taxpayers can start filing their 2022 taxes. Those who work full-time can begin this process once they receive their W2 Form for 2022 from their employer. This document is critical as it provides information needed to submit your taxes correctly and calculate any potential tax refund.

What is W2 Form for 2022?

Are you familiar with Form W2 Form for 2022? This official tax document, also known as the Wage and Tax Statement, is provided to employees at their employer’s conclusion of each tax year. The information it contains is incredibly valuable, displaying your annual wages and any taxes paid on those earnings.

It is important to note that the W2 Form for 2022 contains various components you should pay attention to. From Social Security and Medicare taxes to compensation data required for certain credits or deductions – all are included on the form. In addition, the lower section of the document outlines state-specific income and tax information.

At tax time this year, when utilizing our dedicated tax professionals, you’ll need to reference several of the boxes in W2 Form for 2022 when completing and to submit a 2022 income tax return.

w2 form 2022
W2 Form for 2022

What information can I find from my W2 Form for 2022?

The W2 Form for 2022 document contains all the necessary information to file taxes for American taxpayers. To give an overview, here is a breakdown of each box and the data found about you and your employer.

Boxes A-F: The boxes located in the top left corner of the W-2 are designated with letters from A to F and hold pertinent information that is used to accurately identify both yourself and your employer; this includes legal name, address, Social Security Number, tax identification number as well as a control number which is exclusively used by your employer’s system to single out your W2 Tax Form for 2022.

In Boxes 1 and 2, you’ll find the necessary information most taxpayers need for 2022 – total wages, tips, other compensation, and federal income tax that was withheld. Then, moving on to Boxes 3 through 6, you can see what part of your income has been subject to Social Security and Medicare taxes, along with any taxes paid for both in 2022.

In Boxes 7 and 8, the amount of tip income reported by both you and your employer will be reflected. Meanwhile, Box 9 may appear grayed out but it is nothing to worry about; this was used in the past for reporting advance payments for Earned Income Credit which ended in 2010 yet remains on tax forms.

Boxes 10 and 11 provide insight into any dependent care benefits or deferred compensation you may have received in 2022.

Box 12 includes a variety of additional income or reductions to taxable income, marked by a code with either one or two letters. For these items to be included when filing your taxes, you must consist of certain codes from the 28 available options.

Located in the 13th slot is the section to show income that doesn’t require federal tax payment. For example, it includes contributions made to a sponsored retirement plan such as 401k account, third-party absence pay such as private insurance, or money earned as a statutory employee. The 14th field is an additional space for employers to include other applicable taxes information, such as tuition help or union dues.

A critical part of your W2 Form for 2022  can be found in Boxes 15 through 20. This section provides information about your income and withholdings relevant to state taxes and the ID number that belongs to your employer.

Usually how long does it take to get my W2 Tax Form for 2022?

As mandated by legal requirements, you must receive your Form W2 by Jan. 31, 2023 at the latest. This is usually done via postal mail; however, certain companies offer employees W-2 forms through online portals. It may also come from an external payroll service like ADP or Gusto, so be aware of that as well.

Jan. 31 has come and gone, but you still need to receive your W2 Form for 2022. 

Don’t worry yet – you can do a few things in this situation. First, check around for any emails your employer might have sent with instructions for accessing the electronic version of the form. IRS Publication 15A does allow employers to provide electronic versions, so it’s worth double-checking your spam or junk mail folders in case something got filtered out by mistake.

To obtain your W2 Form for 2022, begin by reaching out to the human resources or payroll department. Ask them whether they sent it and, if it didn’t arrive, request that they send another one.

Should the employer fail to assist, you may contact the IRS directly for more information about your W2 Form for 2022.

When the April. 15 (or the 18 for 2023) deadline has passed, and you still need to receive your W2 Form; there are a few steps to take. 

As April 18 approaches – the day taxes are due this year – and you still need to receive or access your W-2 form, there are a few choices for filing your 2022 tax return.

One solution is to fill out Form 4852 as an alternative so that you can guess your income and withholding tax. But be mindful that any discrepancies between the information on your return and your W2 Form will necessitate an amended return submission.

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Category: Tax and Life Changes, Tax Deadlines, Tax Tips and Tricks, Tax Year 2022
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When to Expect Your Tax Refund in 2023

Posted by admin on January 18, 2023
Last modified: January 18, 2023

When will you get your 2023 tax refund? Here’s our annual chart with our best estimates. Keep in mind that the answer is never exact, but we can make some educated guesses based on a few factors.

Now is also an excellent time to begin applying your year-end tax filing strategies that can lower your tax bill with tax credits or increase your refund with tax deductions. So whether you’re planning for next year or want to lower your bill this year, these strategies can help you out.

Have you had any significant changes in your life this year, like a new job, getting married or divorced, having a baby, retiring, buying a house, or changing investments? These types of things can have a significant impact on your taxes. So it’s a good idea to reach out to PriorTax Tax Professional sooner rather than later. Our dedicated tax professionals can make sure you are taking full advantage of all the tax deductions and tax credits you’re entitled to for maximum tax refund.

Are you wondering whether the 2023 tax filing season is going to be normal? While it’s impossible to say for certain, it’s likely to be closer to normal than it has been since 2019. That was the last tax filing season before COVID-19 caused widespread office closures, even at the IRS. As a result, the 2020 tax filing deadline was delayed by several months.

Don’t worry, the vast majority of taxpayers won’t have any issues come tax season. Just to be clear, the weeks leading up to April 18 2023 is when Americans file their taxes for the income they received during the 2022 calendar year. Alternatively, you can file for an extension, giving you an extra six months to sort everything out.

2023 tax refund

April 18, 2023 is the Tax Deadline!

What is the reason for the 2023 tax deadline being on April 18 instead of the 15th? The standard deadline of April 15 falls on a Saturday, so when this happens, the tax filing deadline to the next business day. However, in 2023 this Monday happens to be Emancipation Day.

The tax filing deadline to file your federal income tax return (Form 1040) is Tuesday, a state holiday Patriot’s Day in Maine and Massachusetts. Most states usually follow the same calendar for state income tax returns. Depending on when you file your taxes, you may receive your tax refund payment within 2-3 weeks.

When to File Your Tax Returns and Expect your 2023 Tax Refund?

It’s that time of year again the tax filing season is around the corner. It is time to think about maximizing your tax refund!

For most people, tax season starts in late January or early February. However, this year may be different due to recent changes in tax law. So it’s important to stay up-to-date on any new developments.

Generally speaking, early filers who are due a refund can expect to see their money sometime in mid-to late February. However, those who claim certain credits like Earned Income Tax Credit or Child Tax Credit may have to wait a bit longer for their refunds – about one month.

Last year was impacted significantly by Covid-19, which caused both deadlines and procedures to change.

According to our projections, this is when you can expect to receive your income tax refund based on when you file your return. Keep in mind that this timeline is an estimate and may change depending on future events.

You can check on the tax filing status of your tax refund using the “Where’s My Refund” tracker from the IRS website or with your assigned PriorTax Tax Professionals. Just enter some basic information about yourself, and we’ll update you on where things stand.

It’s always a good idea to get your tax return in as soon as possible – and Efiling is the quickest, easiest way to do it. In general, you can expect to receive your refund via direct deposit within 2 weeks – although, during the busiest times of tax season (late March), it may take a bit longer. So gather up all your documents such as W2s, 1099s, mortgage, and student loan interest statements, etc.

There are a few important factors that can affect when you might get your 2023 tax refund, these include:

  • How early you file
  • Whether you’re claiming certain credits (especially EITC and CTC)
  • Whether your return is e-filed or sent by mail
  • Whether you have existing debts to the federal government

The IRS will delay processing by 2-3 weeks for income tax returns that claim the Earned Income Tax Credit (EITC) or Child Tax Credit (CTC), so they can verify that taxpayers qualify for the credits.

Keep in mind that this is just an estimate of when you can expect your refund – it’s not exact, since every taxpayer has different returns and situations. Also note that the first column is when the IRS accepts your return, which can be 2-3 days after you submit it electronically. Mailing in a tax return can result in extra delay at the beginning of the process since the IRS will need to manually enter it into their system. But don’t worry – we’ll keep this page updated in case the IRS changes tax season this year.

tax refund in 2023

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Category: Tax Deadlines, Tax Deductions and Credits, Tax for Business, Tax News, Tax Tips and Tricks, Tax Year 2022
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Benefits to Efile taxes when online tax filing for 2022

Posted by admin on January 7, 2023
Last modified: January 6, 2023

Efiling your taxes has become increasingly popular in recent years. The majority of taxpayers now file their tax returns electronically, and it’s no wonder why. Filing electronically is quick, easy, and processed faster than mailing your return. Plus, the IRS recommends Efiling as the best way to file your taxes. Here’s a breakdown of the benefits of Efiling your taxes

In today’s digital world, electronic tax filing is expected to be an alternative to older, manual processes. Businesses can now do more than paper-based, laborious, time-consuming tax preparation or software-based filing with PriorTax. Online tax filing via Efile has brought greater flexibility in filing taxes and is much more convenient as one taxes can now be filed at one’s convenience, home or work.

PriorTax Assigned Tax Service Professionals 

You do not need to use expensive tax-prep software to file taxes electronically. Even if you are not fiscally competent and not in a straightforward situation, you can fill out tax forms with one of our assigned tax professionals step by step on the spot. Online tax filing with PriorTax will identify tax forms and documents you will need to start the filing process with confidence.

Audit Protection with PriorTax

PriorTax can even provide an audit defense during the filing process should your tax return be selected for audit by the IRS.

efile taxes
efile taxes

Benefit 1. Filing Taxes Online or Efile tax is simply the easiest way

Taxes don’t have to be a pain. In the past, you had to make an appointment with your accounting office and wait around while they did the math. But now, you can file online from anywhere. All you need is an internet connection. You can even do it from your phone! With web-based tax programs, there’s no need to go to a physical office. And with locally downloaded programs, you can take your taxes with you wherever you go.

Filing your taxes online is quick, easy, and convenient. With step-by-step instructions, you can be confident that you’re completing everything correctly and won’t face any penalties for inaccuracy. You can even start filing, save your progress, and come back to it later. Online filing is simply more convenient.

Benefit 2. Efiling your tax gets your Tax Return through Direct Deposit

Choosing to file electronically and get your tax refund through direct deposit is the fastest way to get the money as soon as the IRS begins processing returns. Because Efiling reduces processing time, individuals and businesses receive their refunds faster (e.g., within three weeks of Efiling). In addition, you are more likely to get a refund more quickly if you file your return electronically instead of by mail, simply because doing so saves a trip to the post office and time spent in the mail. 

Benefit 3. Efile taxes for faster processing

There are many advantages to filing your taxes electronically. One of the biggest advantages is that you will receive confirmation almost immediately that IRS has received your tax return. Additionally, processing your refund will likely be faster since electronic filing means that IRS does not need to sort or transcribe your tax return at their service center. Everything related to your tax return will be processed faster when you file online. You won’t have to read confusing instructions for each form or try to figure out which number goes in which box. Instead, electronic filing asks simple and intuitive questions, clarifies where inputting information is required, and automatically fills out all necessary forms.

There’s no need to write your name a million times when you file with an electronically signed return. Instead, simply draw your signature on your device’s trackpad, copy and paste it when indicated, and submit your return. The information is sent directly to the IRS immediately, eliminating the wait for postal delivery, IRS mail room sorting, and eventual approval.

Efiling your taxes means receiving any refunds you are owed much faster. Direct deposit is automatically wired to your bank account once the IRS processes your information, rather than waiting for a physical check to come in the mail. This way, you don’t have to rely on the postal service for timely delivery. It usually takes 1-3 weeks to get your refund after you file your taxes electronically and request a direct deposit. But it can vary based on how you filed, what credits you claimed, and how you want to receive your refund. You can learn more about when to expect your refund here.

Benefit 4. Simple and secure electronic records of tax forms

Keeping records of your taxes for up to seven years is a best practice. After that, there is a risk of identity theft when old tax records are disposed of improperly. On the other hand, the stack of past taxes will grow larger each year and take up more space. Efile taxes provides a solution by storing years of history securely online without taking up physical space. This makes information easy to retrieve when needed.

Benefit 5. Accuracy of filing taxes online

Taxes can be confusing, but accuracy is key. Incomplete or incorrect information given to the IRS can result in big penalties – even jail time. PriorTax takes care of everything for you so you can feel confident that your taxes are done right.

Efile your taxes early.

Someone who files early on their taxes will be already in the system, either processing their return or receiving a refund. If you discover that you owe the IRS money, filing early gives you extra time to get back on the road to paying the tax. 

People who file early stand a better chance of discovering errors and fixing them before the deadline, which could result in larger tax refunds. People who tend to wait until later to file taxes are more likely to make mistakes, like missing out on valuable credits and deductions. 

If you filed in mid-January, you would only owe taxes due after filing. The good news is that if you submit your taxes early but then you make an error, you will have extra time to fix it and still be on track for your required filing deadline. For these reasons, if you are not in a state of mind where you can file your taxes properly early, opting for the Tax Extension is a good idea that will buy you some additional time.

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Category: Tax and Life Changes, Tax for Business, Tax Tips and Tricks, Tax Year 2022
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Property Tax 2022

Posted by admin on December 27, 2022
Last modified: December 26, 2022

Welcome to the exciting world of property taxes! In this article, we’ll be discussing how assessors calculate your annual property tax liability.

Are you thinking about buying a new home? If so, then there are a lot of things to take into account. One of the most important factors for many people is the community they’ll be living in. But another important consideration is how your property taxes will contribute to supporting your local area through things like schools and infrastructure. In the United States, all 50 states have laws requiring most property owners to pay real estate taxes. These taxes can vary from state to state.

When you’re searching for a new home, it’s important to keep property taxes in mind. They can add a significant amount to your overall homeownership costs. Here’s some basic information on property taxes, including a state-by-state breakdown, to help you get started.

What Are Property Taxes?

There are a few things to know about paying your real estate taxes. They’re based on the assessed value of your home, and rates can vary by state. But generally speaking, this is a tax that homeowners pay to their county or local government. So, when budgeting for your annual expenses, be sure to factor in your real estate taxes.

As a homeowner in the United States, you are likely responsible for paying property taxes on a monthly basis, along with your mortgage payments. Once you pay off your loan, you may receive a bill for the tax from local government periodically throughout the year. The money collected through property taxes goes towards supporting the community, including infrastructure improvements, public services and local public schooling.

property tax
property tax

What Are Property Taxes Based On?

The value of your home is important for many things, including your property taxes. It’s important to know that the assessed value for property taxes may not always match the actual value of your home. This can affect how much you owe in taxes. Property tax amounts can vary depending on the state and county you live in, as well as the overall value of your home. This includes both the land and any structures on it.


The first thing you need to know is that all calculations are based on a unit called a mill, which is equal to one-thousandth of a dollar. With that in mind, let’s take a look at the three values that are used to find your annual property tax liability:

  • the state tax rate
  • the assessment ratio (the portion of the property value subject to tax),
  • and the property value.

States Ranked By Property Tax

State Property Taxes ranked from the lowest to highest

*$217,500 is the median home value in the U.S. as of 2019, the year of the most recent available data.

RankStateReal Estate Tax RateAnnual Property TaxAverage Home Price
1Hawaii0.28%$606 $615,300 
2Alabama0.41%$895 $142,700 
3Colorado0.51%$1,113 $343,300 
4Louisiana0.55%$1,187 $163,100 
5D.C0.56%$1,221 $601,500 
6Delaware0.57%$1,240 $251,100 
6South Carolina0.57%$1,238 $162,300 
8West Virginia0.58%$1,269 $119,600 
9Nevada0.60%$1,310 $267,900 
10Wyoming0.61%$1,319 $220,500 
11Arkansas0.62%$1,358 $127,800 
12Utah0.63%$1,362 $279,100 
13Arizona0.66%$1,446 $225,500 
14Idaho0.69%$1,492 $212,300 
15Tennessee0.71%$1,548 $167,200 
16California0.76%$1,644 $505,000 
17New Mexico0.80%$1,740 $171,400 
18Mississippi0.81%$1,751 $119,000 
19Virginia0.82%$1,779 $273,100 
20North Carolina0.84%$1,833 $172,500 
20Montana0.84%$1,818 $230,600 
22Indiana0.85%$1,853 $141,700 
23Kentucky0.86%$1,866 $141,000 
24Florida0.89%$1,934 $215,300 
25Oklahoma0.90%$1,952 $136,800 
26Georgia0.92%$2,006 $176,000 
27Oregon0.97%$2,116 $312,200 
27Missouri0.97%$2,111 $157,200 
29Washington0.98%$2,134 $339,000 
29North Dakota0.98%$2,138 $193,900 
31Maryland1.09%$2,370 $314,800 
32Minnesota1.12%$2,429 $223,900 
33Alaska1.19%$2,599 $270,400 
34Massachusetts1.23%$2,667 $381,600 
35South Dakota1.31%$2,857 $167,100 
36Maine1.36%$2,953 $190,400 
37Kansas1.41%$3,060 $151,900 
38Michigan1.54%$3,343 $154,900 
39Ohio1.56%$3,390 $145,700 
40Iowa1.57%$3,407 $147,800 
41Pennsylvania1.58%$3,442 $180,200 
42Rhode Island1.63%$3,548 $261,900 
43New York1.72%$3,749 $313,700 
44Nebraska1.73%$3,754 $155,800 
45Texas1.80%$3,907 $172,500 
46Wisconsin1.85%$4,027 $180,600 
47Vermont1.90%$4,135 $227,700 
48Connecticut2.14%$4,658 $275,400 
49New Hampshire2.18%$4,738 $261,700 
50Illinois2.27%$4,942 $194,500 
51New Jersey2.49%$5,419 $335,600 
property tax by state
Source: WalletHub

State Property Tax Exemptions

As a homeowner in the United States, you are generally required to pay property taxes. However, there are some exceptions where certain properties may be exempt from this tax. This is different from a tax deduction, which only lowers the amount of taxes that an individual or group owes. Property tax exemptions can include qualifying individuals such as senior citizens, STAR participants, those with disabilities and veterans. Certain eligible government entities, nonprofit organizations and religious groups may also fall under an exemption.

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Category: Tax News, Tax Tips and Tricks, Tax Year 2022, Taxes for Prior Years
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Amended Tax Return

Posted by admin on December 21, 2022
Last modified: December 22, 2022

Key Takeaways When Getting Amended Tax Return

If you filed your income tax return with missing or inaccurate information, you could amend the tax return using the tax form 1040X with PriorTax and our Tax Service Professionals. Here is how to file a 1040X form with the IRS, when you should amend a tax return, and other rules you should know. When filing your tax form 1040X, you may wonder what to put on your amended return.

Use the tax form 1040X to report major changes, like adjusting filing status, adding or dropping a dependent, filing for tax deductions or credits you missed, or adding taxable income that you forgot to itemize. In addition, tax form 1040X is generally used to address errors regarding your filing status, income, claims for deductions or credits, or tax liabilities.

Once you have indicated you are preparing a modified return, PriorTax Tax Service Professionals will assist you in completing tax form 1040X and any supporting forms and documents as you make changes to your income and deductions. Sign up to PriorTax to create your account to enter your information, or sign in again to start editing your return. Then, you can reach out to our Tax Service Professionals to walk you through this process. The filing does not accelerate the process and can slow it down; tax amendments are made only to modify or fix things in an accepted tax return.

amended tax return
amended tax return

Generally, you should file a tax amendment form with IRS and/or a state amending return if you need to add more information, delete information, or make a general correction on a return on your income tax that you have completed filing already via mail or electronically. Unfortunately, some state tax agencies do not permit you to e-file your individual income tax amendment; you may need to mail your completed, amended state return to your state to complete it. Previous years’ amendments may also be completed at no cost. Note that with PriorTax, you could eFile your past 3 years of federal taxes.

Suppose you are owed a tax refund on the tax returns for the current year. In that case, the IRS says that, generally, you should wait to get your refund before filing a tax amendment for an amended tax return, especially if you are filing for a refund extension.

How Soon to Act for An Amended Tax Return?

If you are filing tax form 1040X to claim your refund, you typically must do so within three years after filing your original return or two years after paying the taxes, whichever is later. However, you could amend your taxes if your original return was prepared using tax form 1040 or tax form 1040SR. To file your amended tax return, you can e-file or download the 1040X form with PriorTax and with the help of our Tax Service Professionals.

To add or change the number of dependents who qualify, you must print and mail the amended tax return for each affected year to the IRS. However, you do not have to file an amended tax return if some tax forms are not attached because, in such cases, DOR would contact you if additional information is needed.

Are There Penalties for Filing Amended Tax Return?

No penalties are assessed on the additional taxes if you voluntarily file the amended return and pay any taxes due.

Anyone can file an amended tax return with PriorTax, even if they used another vendor or mail in their original return. However, an amendment should be filed only if the IRS or a state has already accepted your return and you need to make changes because of a bug, omission, or statutory update.

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Category: Tax Tips and Tricks, Taxes for Prior Years
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Income Tax Calculator

Posted by admin on December 16, 2022
Last modified: December 16, 2022

2023 Income Tax Calculator

PriorTax uses the personalized and most up-to-date income tax calculator to accurately estimate your federal income tax refund, or the tax you owe, in just a few short, easy steps. PriorTax income tax calculator will calculate a rough approximation of your tax refund or the amount you owe.

To find your estimated tax refund or amount due, it is first necessary to identify your eligible taxable income. Then, it can use the taxable income to calculate your average tax rate. Finally, the effective tax rate describes the average rate you will pay on taxes.

income tax calculator
income tax calculator

Calculating Your Tax Credit

Unlike deductions and adjustments, which are applied to your income, tax credits are applied directly to your tax liability, meaning the amount of taxes you owe. Some credits are refundable. Taxpayers can reduce their tax burden – and the amount of taxes they owe – by taking deductions and credits.

Calculating your Tax Deduction

Each deduction you claim can lower the amount of taxes you owe, leading to a lower tax bill overall. If your itemized deductions are smaller than the standard deduction, the PriorTax income tax calculator will use the standard deduction. Unfortunately, the standard deduction also does not allow for many itemized deductions, like state and local income taxes, business expenses, home mortgage interest, real estate taxes, etc.

Deductions for State and Local Taxes Paid, known as the SALT deduction, allows taxpayers to deduct up to $10,000 in the form of any property taxes paid by state and local governments, in addition to any income taxes paid by states or their sales taxes. If a taxpayer makes more than the amount allowed by the standard deduction, one must pay a higher amount under the AMT or the standard income taxes.

How PriorTax Income Tax Calculator Works

To begin using the income tax calculator, type your yearly salary into the salary box and steadily work through the rest. Once you complete the steps and are confident, you have entered all of the accurate information, hit the “Submit” button, which will show the breakdown of your taxes. Once you click the button, you will see an itemized breakdown of your tax payments for each year and a detail of those payments. PriorTax income tax calculator is based on the information you provide about your filing status, income, retirement contributions, withholding, deductions, and dependents.

Our income tax calculator accurately estimates the current year’s average tax rate as the federal income tax liability divided by total gross income. In addition, PriorTax income tax calculator automatically determines if standard or itemized deductions (based on your inputs) would produce more considerable tax savings and uses the larger of these two values in the estimated computation of taxes owed or due.

You can learn more about the thresholds and rates used by our income tax calculator. You may also be eligible to write off other items, like student loan interest or half your self-employment taxes, as you prepare your income tax return, effectively reducing your taxable income.

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Category: Tax Deductions and Credits, Tax Tips and Tricks, Taxes for Prior Years
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2023 Tax Brackets and Tax Code

Posted by admin on December 9, 2022
Last modified: December 8, 2022

The 2023 tax year will see some changes to the limits and thresholds on some well-known tax provisions as a result of inflation adjustments announced by the IRS. These include increases to the income thresholds for the 2023 tax brackets, which could mean that many people may pay less in taxes in 2024.

As we head into another tax season, it’s important to be aware of the major changes made to the 2023 tax brackets and tax code. One of the most significant changes is how inflation is considered when determining your tax bracket. This change is known as “bracket creep,” and it can have a major impact on your taxes. In order to prevent bracket creep, the government makes annual adjustments to the tax code. This year, those adjustments will impact taxpayers’ incomes in 2023. Knowing about the changes now can help you plan ahead and ensure you’re prepared come tax time.

2023 Tax Brackets and Tax Rates

There are seven different tax brackets that the government imposes on citizens in the United States. The marginal rates for these brackets are 10%, 12%, 22%, 24%, 32%, 35%, and 37%. These rates will not change in 2022. However, the income thresholds that dictate which bracket a person falls into will be significantly adjusted for 2023.

The new tax brackets for 2023 have been released, and there are some changes that taxpayers need to be aware of. For example, the maximum income for a married couple filing jointly to remain in the 12% bracket has increased from $83,550 in 2022 to $89,450 in 2023. Toggle between the tabs in the chart below to explore how income thresholds will change across all filing statuses in 2023.

2023 Standard Tax Deduction

The IRS offers a deduction for 2023 taxpayers who do not itemize their taxes. This is known as the “standard deduction.” For the 2023 tax year, the amount of the deduction will increase by $900 for single filers and those married filing separately, $1,800 for married couples, and $1,400 for heads of household. In addition, the additional deduction for those over 65 or blind (up from $1,400 in 2022) and $1,850 higher for those also unmarried and not a surviving spouse (up from $1,750 in 2022).

2023 tax brackets
2023 tax brackets

2023 Capital Gains Tax

Different types of taxes are assessed on different types of income. For example, a person’s earnings from their job are taxed as wage income, while the profits generated from selling an asset, such as a stock or cryptocurrency, are taxed as a “capital gain.”

Short-term gains (capital gains on assets held for less than one year) will be taxed in 2023 at the same tax rate as your other ordinary income. However, long-term gains (capital gains on your assets held for more than one year) get special tax rates: 0%, 15%, or 20%.

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Category: Tax Deadlines, Tax Deductions and Credits, Tax for Business, Tax News, Tax Tips and Tricks
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How to eFile Back Taxes

Posted by admin on December 1, 2022
Last modified: November 29, 2022

Haven’t Filed Your Previous Years Taxes Yet?

Have you not filed your previous years tax or file your tax from last year? Don’t worry. PriorTax can help you file a return for any prior year. You may even e-File your previous 3 years taxes online with PriorTax. Then, reach out to our Tax Service Professionals to guide you through the back taxes filing steps.

There can be many reasons as to why someone might not file their taxes. Maybe you were unaware that you needed to, maybe you couldn’t afford the tax bill, or perhaps other things in life got in the way. Whatever the case maybe, it’s important to file back taxes as soon as possible after the deadline has passed.

In some cases, it may be because they owe a tax bill that they can’t afford to pay. But skipping out on filing your tax altogether will only make matters worse, as the IRS will charge you interest and penalties for each month you’re late. So instead of avoiding filing your return, it’s best to contact the IRS and work out a payment plan that you can afford.

how to file pervious years taxes
how to file pervious years taxes

How to File Previous Years Tax and What you should do if you didn’t file last year tax?

It’s not too late to file your taxes from last year. You can still do the right thing and submit your return as soon as possible. Keep in mind that you will need all the required documents for the tax year you are filing before you begin. And, if you’re missing some information, the IRS may be able to help. They maintain records of all returns filed in the past 10 years. You can request a transcript of a previous tax year by filling out Tax Form 4506-T Request for Transcript of Tax Return. However, for filing previous 3 years taxes you may e-File back taxes with us with the help of PriorTax Tax Service Professionals.

The IRS may file a substitute tax return if you have not filed a tax return. However, they will not be as concerned with getting all your deductions and credits as you would be. This could result in a smaller refund than you deserve.

You might not get your refund at all. There’s no punishment for not filing taxes early, but you only have three years from the deadline to submit your return. Otherwise, you could lose your refund entirely.

You also need to ensure your IRS tax forms (and instructions) are correct. Verify that all of your forms are for the year you are filing.

If you must file a prior-year return, the previous years taxes are listed on the main menu by tax year. In most cases, you may be able to do so retrospectively, as long as you did not file your back taxes return. If you are filing previous taxes just for that tax, you can just file Form 5329.

To file previous years taxes return with back taxes, you need your W-2s or 1099 forms that you received in those tax years to report your income. Whenever you file previous years taxes returns, you will need any forms showing your income from the previous tax year for which you are filing taxes. You may have to print out the tax forms and mail them to the address listed on your 1040 instructions for the tax year you are filing. But if you are filing previous 3 years taxes, you may e-File any back taxes with us with the help of PriorTax Tax Service Professionals.

PriorTax can help you E-File a previous years tax return.

Do you need help on how to file previous years tax? PriorTax can make it easy for you. We can complete a return for up to three years after it was due. Unfortunately, the IRS and states do not allow electronic filing for prior year returns, so you will need to print and mail your return once you have finished it.

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Category: Tax for Business, Tax Tips and Tricks, Taxes for Prior Years
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eFile Taxes and Tax Extension

Posted by admin on November 25, 2022
Last modified: November 25, 2022

You can eFile federal and state income taxes return electronically using PriorTax. Taxpayers can eFile taxes either through an online tax preparer that is an approved electronic return originator (ERO) such as PriorTax with free support from our Tax Service Professionals.

eFile taxes with PriorTax for your return, and choosing to have the refund directly deposited in your bank account is the fastest and easiest way to receive a tax refund. eFiling taxes will get you your tax refund far quicker than traditional mail. eFiling taxes online also speeds up the time that it takes to receive your tax refund.

PriorTax is an authorized IRS e-Filing provider. PriorTax eFiling software will automatically verify that the returns are completed, correct errors, produce relevant schedules, and transfer your returns from your computer to IRS systems and if requested, to the local state tax systems. To help assure that your eFiled tax return is accurate, only proven, top-quality, PriorTax eFiling service will support all customers along with our free Tax Service Professionals to walk you through to eFile taxes.

efile taxes
efile taxes

You may select to have a PriorTax Tax Service Professional help eFile taxes your return for you electronically, or you may choose to do it yourself.

However, note that some states accept electronic filing of tax returns directly, while others send returns directly to the IRS, then those returns are forwarded to state tax agencies. In addition, some states will not let you file a state-only e-Filed return; they will ask that you e-File your state and federal taxes together.

You do not need to worry that data will end up in the wrong hands or misused, as the IRS, the state, and tax preparers all follow the same privacy rules for electronic returns that they do for paper returns. While you may gather all of the necessary documents for your tax return as you go through the e-Filing process, gathering that information sooner may save time later.

How Can I eFile Taxes with a Tax Extension?

Filing an extension for your taxes is easy with PriorTax. Just submit Form 4868, and we’ll take care of the rest. This will give you extra time to prepare for your return, no matter the reason.

An extension only gives you little bit more time to finish tax filing, but no extra time to pay your taxes. Your tax payments are due on the tax filing deadline, which typically falls on April 15 or if the deadline falls on a holiday or weekend, the next business day.

Not filing your taxes on time can result in some pretty hefty penalties. The IRS will charge you monthly interest on the unpaid balance until you pay the full tax amount you owe. Additionally, failing to pay at least 90% of what you owe can result in a late payment penalty, which is usually half of 1% of the amount owed each month, up to 25%. Finally, not filing your return or Form 4868 by the tax filing deadline comes with a late filing penalty of 5% of the amount you owe for each month, again up to a maximum of 25%. So while eFiling a tax extension may not be penalized, it’s still important to make sure you file and pay your taxes on time to avoid some costly fees.

It’s important to get your taxes filed on time, but sometimes life gets in the way. For example, maybe you’ve been busy with work or taking care of your family, and you just need to get a chance to get your taxes done. That’s okay! The IRS offers a six-month extension for individuals who need a little extra time.

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Category: Tax Deadlines, Tax Tips and Tricks, Taxes for Prior Years
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