Category: Tax News

Get up to date on all tax news from the IRS. The IRS is constantly updating us with law changes and new rules. Sometimes, it’s too much to keep up with. We’ll decipher the confusing lingo while you focus on staying current  on what’s really important.

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Archive for the ‘Tax News’ Category

Small Business Tax Filing Tips for 2023

Posted by admin on February 10, 2023
Last modified: February 13, 2023

Small business tax deductions can reduce business income, which lowers the amount of tax owed. One advantage that the self-employed and small businesses have are various tax deductions and credits. Using PriorTax for your small business would also qualify as a tax deduction. For example, if you own a business property, you can claim the associated mortgage interest as a business expense and tax deduction. Sole proprietorships, LLCs, and partnerships can not deduct charitable contributions as a business expense. Still, the small business owner may be able to claim the deduction on the business owner’s personal tax return. Our dedicated tax professionals will know how to record these expenses in your books so they can be accurately reflected on your tax return as a business expense. In a nutshell, small business owners can maximize their tax refund by decreasing their business income and increasing their business deductions. Lowering your net business income will reduce the amount of income taxes due, thus improving your chances of getting a tax refund. It is vital to keep your business income as low as possible so that you can take advantage of all possible deductions.

small business tax

As a small business owner, it is vital to ensure you take every measure available to reduce your small business taxation. While much of your capital may be taken away each year, here are 10 deductions you should be aware of as you look back at your previous tax year and plan for the future. Keeping these tips in mind can help keep more money in the bank while still maintaining compliance with small business tax regulations.

To maximize your tax refund as a small business owner, you should familiarize yourself with the various tax deductions available to your business. Business owners who are employed and self-employed can qualify to use these deductions and credits to lower their taxable income. Here are our top 10 pieces of advice for maximizing your small business tax refund.

1. Record all service fees from legal, consulting, and professional services for small business taxes

Entrepreneurs need to ensure their legal and professional costs are properly documented. Although consulting with experts on tax issues and regulations is an essential part of running a successful business, the fees paid to these professionals can generally be deducted in the same year incurred. Furthermore, business owners may also be able to claim expenses incurred from purchasing books related to driving their company or practicing law.

2 Take advantage of upstarting costs and expenses when filing small business tax returns.

When launching a new business, one should use the deductions available for start-up costs and other expenditures. In the initial years of operations, many start-up costs can be written off when filing taxes. Furthermore, items such as office equipment and supplies, shipping fees, and utility bills may also be deducted from taxable income.

3. Keep track of new equipment or software purchases.

Keep tabs on the acquisitions of new tools or programs. Several small businesses are eligible for a deduction on the cost of certain assets in the same year it is bought. Meanwhile, software usually has to be subtracted gradually over an extended period.

4. Use your car for business purposes.

When running a business, it pays to consider using your car as a means of saving money. Whether you are utilizing your own vehicle or one owned by the enterprise, various costs associated with it can be deducted from taxes. This includes expenses such as the standard mileage rate, parking fees, tolls, and specific amounts of depreciation.

5. Deduct advertising expenses effectively from filing your small business tax.

One should pay attention to the potential deductions for marketing or advertising expenses. This could include spending on business cards, electronic and paper advertisements, and trade show participation costs. All of these can be claimed under current business expenses.

6. Include membership and educational expenses.

When it comes to business expenses, remember to factor in membership fees and educational costs. This includes the cost of joining a professional association related to your business or even fees associated with attending seminars such as CLEs (Continuing Legal Education).

7. Don’t forget to make interest payments be part of tax filing.

Maximize the value of your interest. When buying items for business purposes, it is beneficial to use credit as this allows you to deduct the interest from your taxes. All expenses must be documented thoroughly in order to ensure eligibility for said deductions.

8. Keep receipts for entertainment expenses.

Make sure you hang onto your receipts when it comes to entertainment expenses. By taking meticulous records of coffee runs, dining out, and any other company-related outings, you can deduct such costs from your taxes.

9. See if charitable contributions and donations can be included.

Donating to charity can be beneficial in more ways than one. Unless the business is a corporation, most charitable contributions to suitable institutions are tax deductible. It is essential that individuals keep proof of their donations, such as receipts, canceled checks, or written acknowledgment from the organization. This will ensure they have records of their generous contributions.

10. Save your tax documents for at least 5 years.

Organizing your record is critical when it comes to tax records, and it’s important to hang on to them for at least 5 years. Not only will good record-keeping save you time, but it could also save you money. Maintain copies of your tax returns, receipts from expenses, mileage logs, licenses, and incorporation papers to verify deductions.

Highlights of Tax Changes for 2023

Posted by admin on February 2, 2023
Last modified: February 13, 2023

This tax season brings several tax changes for 2023 to the standard deductions and tax breaks available. Most notably, many of the pandemic-era credits have expired. However, in a turn of events, the Inflation Reduction Act offers two eco-friendly incentives for taxpayers. Additionally, previous homeowner deductions are now gone, and remote workers may face double taxation – both of which should be kept in mind before filing federal returns by the deadline.

Instead of stressing over all the alterations in taxation, those filing taxes should concentrate on how the tax changes for 2023 will apply to their returns and entrust PriorTax Tax Professionals with any other details. This way, they can avoid feeling overwhelmed by the changes.

As it is challenging to stay current with all updates in tax regulations, taxpayers familiarize themselves with their particular set of laws. When preparing for 2022 taxes, review your 2021 return to see which data and documents you need. Additionally, consider any occurrences from 2022 that may have a bearing on your taxes.

tax changes for 2023

These are the Highlight to Tax Changes for 2023 that Could Affect You

Tax credits specific to the pandemic will not be available in 2022.

During the economic crisis caused by COVID-19, certain modifications were made to the tax code as a response. Unfortunately, these temporary measures will soon come to an end; most of them will no longer be applicable in the upcoming fiscal year.

For 2022, the IRS did not issue any new Economic Impact Payments. 

Therefore, taxpayers can avoid having to deal with notifications from the IRS confirming their stimulus check amount when filing taxes, nor can they take advantage of a Recovery Rebate Credit.

Key Pandemic Era Tax credits return back to Pre-Pandemic 2019 levels.

The impacts of the Coronavirus pandemic on 2020 tax credits will be reversed in 2021, as CTC, EITC, and the Child and Dependent Care Credit all return to their pre-pandemic levels.

For tax changes for 2023, there is a steep decline in terms of Child Tax Credit (CTC), and it will go back to $2,000 per child dependent. Another noteworthy alteration of CTC is that it’s no longer refundable. Consequently, this implies that taxpayers won’t acquire their full credit even when it surpasses their own tax obligation.

Though they were temporarily increased last year, single filers with no children are now entitled to only $500 from their Earned Income Tax Credit (EITC), a decrease from its previous maximum of $1,500.

For the 2022 tax year, the Child and Dependent Care Credit will decrease substantially from its 2021 value of $8,000 to a maximum of $2,100. This credit takes into account expenses for child care and day camps incurred out-of-pocket.

Charitable deductions must be itemized.

When taxpayers file their 2022 tax returns, any donations to charities must be listed on the Schedule A form in order to qualify for a deduction. This is a significant tax changes for 2023 from the two previous years when an above-the-line deduction was available for those who donated.

This year, single filers and married couples filing jointly have the opportunity to take advantage of a generous deduction on charitable donations. In addition, the 2021 revision to the CARES Act has allowed an increase up to $300 for single tax filers and those married joint tax filing separately, as well as $600 for joint filers. This marks a substantial growth from 2020, where only single filers and those filing jointly could deduct up to $300, with married filing separately taxpayers able to deduct up to $150.

Are you aware of the tax breaks offered by the Inflation Reduction Act?

Since its signing into law in August 2020, it has provided a handful of beneficial options that can be taken advantage of when filing taxes in 2022.

The Residential Clean Energy Credit has been improved. 

Homeowners can now benefit from a 30% reduction of the costs for solar panel installation, in addition to solar heating products and other related items – an increase from its original 26%. Additionally, there is no limit on how much money can be used for credit or income restriction.

The act’s passage also provided a great incentive to those who own second and vacation homes. By removing the principal residence restriction, homeowners installing solar products on these alternative residences are qualified to receive the tax credit.

Eligibility for electric vehicle (EV) Tax Credit

The Qualified and Eligible Plug-in Electric Drive Motor Vehicle Credit, with a maximum of $7,500 depending on the battery capacity, is accessible to consumers who bought an EV. Those who purchased their car between August 17, 2022 and December 31, 2022 must display that the vehicle was finally assembled in North America to be eligible for this credit; however, those who purchased before August 17 do not need to meet these requirements. The Qualified Eligible Plug-in Electric Drive Motor Vehicle Credit, with a maximum of $7,500 depending on the battery capacity, is accessible to consumers who bought an EV. Those who purchased their car between August 17, 2022 and December 31, 2022 must display that the vehicle was finally assembled in North America to be eligible for this credit; however, those who purchased before August 17 do not need to meet these requirements.

The EV credits in 2022 have already been finalized. Taxpayers must double-check to ensure the purchased vehicle meets all requirements and that the correct credit amount was taken. When bought at a dealership, they cannot claim this credit on their tax return.

Mortgage insurance premium deduction expired.

For homeowners who could deduct their private or mortgaged insurance premium on their taxes, the Tax Relief and Health Care Act of 2006 — which annually extended the deduction — was not renewed for 2022. This means that individuals with a loan balance higher than 80% of the value of their home will no longer be able to itemize this payment. Typically, lenders require borrowers to pay into a mortgaged insurance policy when they put less than 20% down when purchasing a house as an extra protection against default.

Remote workers could face double taxation.

Employers who have decided to maintain part-time or hybrid schedules for their workers into 2022 should be aware of potential double taxation. In addition, depending on the state where the employer is located and where the employee is working remotely, there may be associated tax implications.

In recent years, some states have enacted temporary provisions to prevent double taxation of incomes generated in two separate states; however, these protections come to an end with 2021’s tax year. Therefore, it is important to ensure you are informed about any extra taxes that could arise as a result of continuing work remotely in 2022.

Tax day

As opposed to the customary April 15 tax deadline, individuals have until Tuesday, April 18, to file their federal returns in 2017. The reason for the shift from normal is due to the proximity of a Saturday, April 15, and a local holiday in D.C., which the IRS will observe. In addition, those struck by severe storms in California, Georgia, and Alabama can take advantage of an extended filing period; they have until May 15 to submit their paperwork.

Crypto Tax Filing in 2023

Posted by admin on January 26, 2023
Last modified: February 13, 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

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.

When to Expect Your Tax Refund in 2023

Posted by admin on January 18, 2023
Last modified: February 13, 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

Property Tax 2022

Posted by admin on December 27, 2022
Last modified: February 13, 2023

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

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.

2023 Tax Brackets and Tax Code

Posted by admin on December 9, 2022
Last modified: February 13, 2023

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 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%.

When Are Taxes Due for 2022 Tax Return

Posted by admin on November 14, 2022
Last modified: November 14, 2022

Do you want to know the date for when are taxes due in 2022?

Well, we have the answer for you! According to the IRS, taxes are due on Tuesday, April 18, 2023. So be sure to mark that date in your calendar!

As the end of the every fiscal year approaches, many Americans begin to feel the pressure of taxes. For some, April 15 is a day of dread as they scramble to pull together all the necessary paperwork and documentation. Others look forward to receiving their refund check from the government.

No matter which camp you fall into, it is important to be aware of the latest changes to the taxation system. This year, for example, due to Emancipation Day being recognized as a holiday in Washington, D.C., taxes will be due on Tuesday, April 17.

The IRS typically starts accepting returns in late January, giving taxpayers nearly three months to get their affairs in order. However, victims of federally declared disasters may have an extended filing deadline.

It’s important to be aware of the various tax deadlines that apply to you, such as the federal deadline, your individual state deadline, and the late filing deadline. Here, we’ve listed the major ones for the tax year 2022 (taxes filed in 2023).

When is the federal tax filing deadline and taxes due for 2022 Tax Return?

The deadline for federal tax returns and payments is April 18, 2023.

What are some other important dates for 2023 filing taxes?

The IRS has set the following deadlines for the upcoming tax seasons:

  • January 2023 – IRS begins accepting returns
  • February 21, 2023 – Fourth quarter estimated payments due for the tax year 2022
  • February 1, 2023 – Employers must mail W-2 forms
  • April 18, 2023 – Tax Day/federal returns and payments due, final day for 401k contributions, the final day to file an extension

What is the 2023 tax filing deadline for my state?

The due date for filing and paying state taxes varies by state. You can check your state’s Department of Revenue for the most up-to-date information.

As an independent contractor, consultant, or self-employed individual, it’s important to be aware of the various deadlines for filing your taxes. For example, the last quarterly estimate deadline for work completed during Q4 of 2022 is February 18, 2023. However, if this is your first time reporting an estimate, you may have some additional questions. In that case, check out more information about quarterly estimate taxes here.

when are taxes due 2022
when are taxes due 2022

We know it takes a lot of work to manage your calendar. That’s why PriorTax reminds you when quarterly estimates are due. Get started today!

When is the deadline to file a federal tax return extension in 2023?  

The tax filing deadline to file a 2022 federal tax return extension is fast approaching! You must file a tax extension by April 18, 2023, to avoid penalties. Keep in mind that a 2023 tax extension only gives you more time to submit your tax return, not to pay your taxes. So make sure you have all your ducks in a row before the April 18 tax deadline!

Will the IRS extend the 2023 tax filing deadline for 2022 returns?

As we approach the end of the tax year, many people are wondering whether the IRS deadline for filing returns might be extended. Unfortunately, it’s not likely. The IRS typically only extends deadlines in the case of unexpected events, like natural disasters. The deadline is on track to be April 18, 2023.

When do I have to file an amended tax return for the 2022 tax year?

It’s important to know the deadline for filing an amended return, three years from the original due date. For example, the deadline for a return filed in 2023 would be April 18, 2026. After that, you would only need to file an amended tax return only if changes needed to be made, and you can’t amend a return until the IRS has accepted it.

How do I file online my 2023 taxes before the tax filing deadline?

Filing your taxes doesn’t have to be a chore. Let PriorTax take care of everything for you. We’ll tailor the filing process to your specific needs and make sure everything is done before the deadline. Plus, our support team is always here to help you out should you need it. So get started today and make tax season a breeze.

Fourth Stimulus Checks

Posted by admin on September 30, 2022
Last modified: September 29, 2022

As concerns about inflation continue to mount, some states are taking matters into their own hands. Eighteen states will send fourth stimulus checks payments to taxpayers in the coming months in an effort to provide relief from rising prices.

Unlike previous pandemic relief measures, these fourth stimulus checks payments are much more targeted, and most offer considerably lower dollar amounts. That’s not because governments have developed a mean streak. Instead, it’s about helping Americans whether raising prices without making inflation worse.

These states hope to ease the burden on residents struggling with inflation by providing targeted relief payments.

With prices soaring for basic goods and services, many Americans struggle to make ends meet. To ease the financial burden, the federal and state governments have implemented relief plans that target specific sectors or groups.

For example, some gas cards provide discounts at the pump, while others offer direct disbursements based on income thresholds. While these plans won’t eliminate the pain caused by rising prices, they can help ease the financial burden of struggling people.

Summary on the Latest 6 State’s Fourth Stimulus Checks

fourth stimulus checks
fourth stimulus checks

Fourth Stimulus Checks in California

Expected fourth stimulus check, maximum $1,050 as a rebate. Californians rejoice! Gas prices in California may be through the roof, but soon enough, some financial relief will be headed your way. Thanks to the state budget for 2022-2023 that Governor Gavin Newsom signed on June, 23 million California residents would be receiving direct payments ranging from $350 to $1,050. This is amazing news for over half of the state’s population! The California Franchise Tax Board has confirmed that these payments will start rolling out on Oct. 7.

In anticipation of this event, the state has set up an information page all about the “Middle-Class Tax Refund.” In addition, you can find a calculator on this page to help you estimate your payment amount.

California is set to provide stimulus payments to eligible taxpayers through direct deposits and debit cards. Individual taxpayers who make $75,000 or less per year will receive $350, while eligible couples filing jointly will receive up to  $700 if they make no more than $150,000 annually. Households with qualifying dependents will also receive an additional $350.

Payments are set to be issued between October 2022 and January 2023. Californians can expect to receive their payments during this time frame via direct deposit and debit card.

The majority of people eligible for the Golden State Stimulus will receive their payments by direct deposit, with a smaller number of debit cards being used to distribute the remaining payments. The schedule for issuing these payments is as follows:

-If you received either of the two previous Golden State Stimulus payments by direct deposit, you’ll receive your Middle-Class Tax Refund by direct deposit between Oct. 7 and Oct. 25.

– Otherwise, if you have filed your 2020 tax return electronically in California and got a tax refund by direct deposit, you may expect to receive a direct deposit between Oct. 28 and Nov. 14.

– Fourth stimulus checks debit cards can be used to distribute the remaining payments from the state. For example, if you plan to receive the Golden State Stimulus by debit card, you could expect to receive a fourth stimulus check debit card for the Middle-Class Tax Refund between Oct. 25 and Dec. 10. Other payments done by debit card would be sent by 2023, Jan. 15.

Fourth Stimulus Checks in Florida

Expected fourth stimulus check, $450 payments. Some families in Florida with children will get one-time payments of $450 per child through Hope Florida – A Pathway to Prosperity, a program operated by the Department of Children and Families.

This money comes from pandemic aid funds intended for households receiving Temporary Assistance for Needy Families (TANF) cash assistance and will help to offset the costs of caring for children. Eligible recipients include foster parents, relative and non-relative caregivers of children, participants in the state Guardian Assistance Program, and families receiving TANF cash assistance.

This one-time payment provides a much-needed financial boost for families struggling to make ends meet during these difficult times.

The state of Florida is providing a payment of $450 per child to offset the costs of rising inflation and help with the new school year. You don’t have to do anything to receive this payment; if you are eligible, you should have already received a check in your mail box. Delivery was anticipated to occur on or before Jul. 25, when the state’s back-to-school tax holiday began.

Fourth Stimulus Check in Massachusetts:

Expected fourth stimulus check, up to 7% of income may be returned. Up to 7% of your income may be returned to you in the form of a rebate check from the state of Massachusetts. The exact amount of the rebate will not be announced until Sept. 20, but it is estimated that each resident will receive an amount equal to 7% of their total income tax paid for the year.

This return of funds is possible due to a 1986 law that allows for rebates when there is a surplus in state revenue. Currently, the state auditor’s office has declared a surplus of $2.3 billion. For someone with an annual income of $75,000, this would mean a rebate of approximately $250.

While this new fourth stimulus checks news in Massachusetts is a relief to many taxpayers, it is important to keep in mind that this is only a temporary measure.

Fourth Stimulus Check in New Jersey

Expected fourth stimulus check, $500 rebate checks. In order to get the $500 rebate check from the state of New Jersey, you must file your taxes using a taxpayer identification number instead of a Social Security number. The Excluded New Jerseyans Fund applies to nonresident and resident aliens, their spouses, and dependents. You do not need to apply for this rebate; after you file your 2020 NJ-1040 return, a rebate will be calculated automatically for most eligible taxpayers in New Jersey.

If you are eligible, you will receive a rebate equal to the tax paid after credits, up to a maximum of $500. So, if the amount on line 50 is less than $500, you will receive a check for that amount. But if the amount on line 50 is $500 or more, you will get a check for $500. Tax rebates will be issued as paper checks, separate from your Income Tax refund.

To qualify, you must be:

– A New Jersey resident for all or part of 2020

– Have submitted a 2020 NJ-1040

– Have at least one qualifying child claimed as a dependent on your NJ-1040

– Have a Balance of Tax of $1 or more (line 50 of the NJ-1040)

– And have New Jersey Gross Income (line 29 of the NJ-1040) that is:

– $150,000 or less for individuals with a filing status of Married Filing Joint, Head of Household, or Surviving Spouse

– $75,000 or less for individuals with a filing status of Married Filing Separate or Single

Pending Fourth Stimulus Check in Pennsylvania.

Pennsylvania is considering a new program providing direct financial assistance to nearly 250,000 households. The PA Opportunity Program, proposed by Governor Tom Wolf, would give eligible households with an income of $80,000 or less a one-time payment of $2,000.

The payments would come from the state’s surplus; however, some state Republicans argue that this could worsen inflation. Meanwhile, some residents may already be eligible for a Property Tax/Rent Rebate under a different program. Fourth stimulus checks are being sent out to those who qualify, including senior people over 65, widows and widowers over the age of 50; and people with disabilities 18 and older.

You could qualify for a rebate of up to $650 from the Pennsylvania Department of Revenue if your annual income amount is below certain thresholds. For homeowners, the maximum income is $35,000 per year. For renters, the maximum income is $15,000 per year. In addition, Social Security income is only required to be claimed if it is half of your total income. To see the full list of application rules and income exemptions, visit the Pennsylvania Department of Revenue website.

The latest round of stimulus checks will let people use their most recent tax data for 2019 or 2020 (file a tax return through TurboTax) so that the newest information about dependents and payments is available. This will not likely have any lasting impact beyond updating your dependent or payment data. Still, the IRS will use only the data from your 2020 tax return to determine whether you are eligible for the fourth stimulus checks, as long as the IRS has processed your return (WMR Refund Status=Refund Sending). If your 2021 tax information has changed, that will be reported on the 2021 return, and your credit amounts will be adjusted accordingly. Make sure you are set up for this round of stimulus checks with our PriorTax Tax Service professionals.

Updates on Student Loan Forgiveness

Posted by admin on September 9, 2022
Last modified: September 15, 2022

As higher education costs continue rising, many students struggle to repay their loans. The Biden-Harris administration proposes a new income-based repayment and Student Loan Forgiveness plan to make the lending process more manageable for future borrowers.

The Biden-Harris Administration recently has committed to providing relief for student debtors. Under the new Student Loan Forgiveness plan, borrowers can receive up to $20,000 in debt forgiveness, depending on some factors regarding their loans, income, and other financial aid they’ve received.

student loan forgiveness
student loan forgiveness

The government’s moves to “cancel” the debt and extend the student loans pause are just two parts of a larger Student Loan Forgiveness plan that could turn out to be the most costly executive plan in the history of higher education. The Biden-Harris administration and the U.S. Department of Education (DOE) have developed a three-part plan to help federal student loan borrowers return to regular repayment schedules and prevent unnecessary delinquencies or defaults. The updates also complement previously announced changes, including ending the amnesty for government service loans and the Fresh Start program for insolvent borrowers.

Here’s a look at the various initiatives involved with the plan, who qualifies, and how to go about claiming the relief. With this new plan in place, students can focus on their education without the burden of oppressive debt weighing them down.

Student Loan Forgiveness: When Do Student Loans Resume?

As of December 31st, 2022, the automatic pause on student loans repayments has been extended once again. This means you will not have to make any loan payments until later. Don’t hesitate to get in touch with your lender for more information if you have any questions about your loan or repayment status.

The Department of Education proposes a new income-based repayment plan to protect more low-income borrowers from repayment and cap monthly college loan repayments to 5% of borrowers’ discretionary income, which is half the rate borrowers currently have to pay in most cases.

In addition, there are plans to write off up to $10,000 of federal student loans debt for borrowers making less than $125,000 with relief of up to $20,000 for those who received a Pell Scholarship and qualify for borrowers.

How to Apply for Student Loan Forgiveness in 2022?

There are a few things to consider if you want to have your student loans forgiven. The first is whether or not you qualify for relief. The relief is most heavily targeted to low and middle-income families, so if you come from a family that falls into either of those categories, you may be eligible for more forgiveness than others.

Individuals with income under $125,000 or households with under $250,000 in total annual income are eligible as follows:

Pell Grant recipients with loans held by the U.S. Department of Education will have up to $20,000 in student debt canceled. Non-Pell Grant recipients with loans held by the U.S.

The Department of Education (DOE) is still working out the details of how to forgive debt for students who took out loans from private lenders. We will continue to provide updates here as they are announced. In the meantime, it is encouraged to apply for relief as soon as possible to receive it before the repayment pause expiration (end of the year).

What do you need to know about Public Service Loan Forgiveness Program (PSLF)?

Are you struggling to pay off your student loans? Then, you may be eligible for the Public Service Loan Forgiveness (PSLF) program.

The Public Service Loan Forgiveness (PSLF) program may forgive the remaining loan balance on your Direct Loans after you make 120 monthly qualifying payments while working full-time for a qualifying employer.

To qualify, you must be employed by a government organization, non-profit organization, or another qualifying employer when you apply for student loan forgiveness and during loan repayment.

Overall, according to an analysis provided by the Department of Education, student loan forgiveness will eliminate student debt for about 20 million people and cut monthly payments by an average of $250 for borrowers with residual balances who have payment plans.

How to E File Previous Years Taxes Online

Posted by admin on August 10, 2022
Last modified: August 10, 2022

Life is full of surprises; sometimes, things will simply happen before you know it, like the Tax Deadlines in April. If you have taxes past due, you are probably wondering where to begin. Has the deadline officially passed, or is it possible to continue filing previous years taxes? Tax Service Professionals at PriorTax are going to take you through the steps.

How to File Previous Years Taxes

To file your prior year’s return, you will need your W-2s or 1099 forms that you received in those tax years to report your income. Back tax returns have to be filed on paper and mailed to the IRS – they can be filed electronically or simply E-file tax online with PriorTax, and our LIVE Tax Service Professionals support will help you through it.

Taxpayers may e-file online with PriorTax, or use a tax preparer that is an approved electronic return originator (ERO). Under this arrangement, taxpayers may use approved software to file federal income tax returns and state income taxes in Missouri. You may also file electronically using approved, commercially available software programs, or you may have your return prepared and submitted by a licensed tax professional. If you wish to prepare your taxes in person, you may also use an authorized E-file vendor. The simplest and easiest way to file previous year taxes online is with PriorTax with the LIVE help of Tax Service Professionals.

You can use PriorTax to Efile tax online previous years taxes returns for up to 3 years after it is due.

Easy way to E file Previous Years Taxes Online

Simply create or log into your PriorTax account or create a new account to begin. Then click on the tab in the middle of the “My Account” page. Select the year you wish to begin previous year tax filing and begin filing your previous years taxes return online as E-file. From there, you’ll enter the income and expense information for the year you are filing. Of course, you can always rely on our free LIVE Tax Service Professionals for free. You will have the easiest experience filing taxes for both previous and current years.

Once your return is complete, any previous years taxes filings up to three years, you do not need to print out and mail in paper copies of your forms. This is because with PriorTax, the IRS supports e-filing prior tax year returns online electronically.

When you file your previous tax year taxes with PriorTax, you’ll get all the correct tax forms and the instructions for the previous tax year you are completing.

previous years taxes
previous years taxes

EFiling Previous Tax Years with PriorTax Online for Tax Returns

If you’re behind on your previous taxes, you can use PriorTax to E-file to get caught up. You can electronically Efile tax returns for the last 3 years. In 2023, you can file your 2022 return, plus returns for 2019, 2020, and 2021.

If needed, you can also file older returns by mail. Our Free Tax Service Professionals will help file with PriorTax for earlier years.

Keep in mind that the IRS usually only audits returns that are six years overdue or less. So your past six years of tax returns are typically the only ones that would be considered for an audit.

By Efiling Tax Online Previous Year Taxes Can I Still Get My Tax Refund?

Suppose you filed your return within three years after your original filing date. This deadline period is also applicable for tax credits such as the Earned Income Tax Credit (EITC). Tax deductions and credits can significantly reduce your tax burden, so it is in your best interest to file during this three-year window to receive your earned tax credits and refund. If you have a previous-year return you are still due, you can start today with PriorTax.