Tag: tax deadline

A major update to the IRS Direct File program can now automatically import return verification information, preventing one of the most common filing errors. Direct File is now available in 12 states and accepts simple tax returns with limited income and deductions. By using Direct File, taxpayers can access their IRS account information to validate their returns before filing, making the process more efficient.

There are still ways to reduce your taxes or get a bigger refund before the April 15th deadline. Consider putting money into a pretax IRA, a spousal IRA (if you're married), or a health savings account. These contributions can lower your taxable income or provide tax-free growth.

Married couples where one spouse doesn't work can take advantage of spousal IRAs. These accounts allow the non-working spouse to contribute to an IRA based on their spouse's earned income. The contributions can reduce taxes for that year and help grow retirement savings. The deadline to contribute for 2023 is April 15th. Consider consulting a financial advisor to determine if a spousal IRA makes sense for you.

The IRS has already issued over 43 million tax refunds totaling $135.3 billion, with an average refund of $3,145. However, this average could change as more returns are filed. The IRS encourages taxpayers to check their refund status using the "Where's My Refund?" tool online. Despite the early refunds, only about half of the expected returns have been received, and filing for an extension can push the deadline to October 15th.

The federal income tax deadline is April 15th, but some taxpayers in disaster-hit areas have until June 17th. Several free tax-filing options are available, including the IRS Direct File and Free File programs. Consider claiming tax credits and deductions to reduce your tax bill. Remember, if you contributed to a retirement account or an HSA in 2023, you can still make contributions until the tax deadline to potentially lower your tax liability.