Tax season is here again. Below is what’s new and important for your 2023 return — changes to deductions, credits, reporting rules, and more. Use this guide to prepare wisely and avoid surprises.
When Can You File for 2023?
The IRS typically opens e-filing in January. Grants Pass Tax Service is ready to assist you early in the season. Stay tuned to official announcements for the exact open date.
Key Dates & Deadlines
The deadline to file your 2023 return is Monday, April 15, 2024. Extensions are available. For individuals in disaster-affected areas, the IRS may provide relief. Always check your local relief notices.
Standard Deduction Increases
For 2023, the standard deduction amounts are:
- Single or married filing separately: $13,850
- Married filing jointly: $27,700
- Head of household: $20,800
Child Tax Credit Changes
In 2023, the Child Tax Credit is back to a maximum of $2,000 per child. Some of it is refundable (up to $1,600), but it is no longer fully refundable.
Child & Dependent Care Credit
The credit remains at pre-COVID levels. You can claim up to 35% of qualifying expenses: $3,000 for one dependent (max $1,050), or $6,000 for two or more dependents (max $2,100).
Earned Income Tax Credit (EITC)
For filers with three or more children, the 2023 EITC may reach **$7,430**. For those without children, eligibility requires being at least 25 but under 65.
1099-K Reporting Rules Delayed for 2023
The IRS has postponed the lower threshold for third-party payment reporting for tax year 2023. The old rule (>$20,000 & >200 transactions) remains in effect for now. The $600 threshold may begin in 2024.
Energy & Home Improvement Credits
The solar energy credit rises to 30% for qualifying equipment. The home improvement credit also increases for energy-efficient upgrades: up to $1,200 annually, and no lifetime cap.
Vehicle, Student Loan & Gift Tax Updates
- Electric vehicle purchases in 2023 may qualify for up to $7,500 credit, if IRS requirements are met.
- With the student loan payment pause ending in September 2023, deduct up to $2,500 in student loan interest.
- The gift tax annual exclusion amount is $17,000 per person ($34,000 for married couples).
These updates are numerous and complex. If you want help applying them to your situation — or preparing your return confidently — contact Grants Pass Tax Service. We’ll be here for you every step of the way.
