Monday marks 1st day to file taxes, as experts warn ‘refund shock’ possible for 2023 tax season
COLORADO SPRINGS, Colo. (KKTV) - You can start filing your taxes Jan. 23rd, but the 2023 tax season might look a little different than previous years.
“This coming tax season our tax payers are going to experience something called refund shock,” David Fruh with Jackson Hewitt Tax Service in Colorado Springs explained. “Refund shock is going to be a product of two things. One, there’s no more stimulus money out there. So, last year we had recovery rebate credit, which was good for $600, $1,200, or $1,400 per individual. This year, that’s gone.”
The other big change is a lot of the tax credits have reverted back to their pre-pandemic levels.
“An example of that would be the child tax credit, which was good for $3,600 last year, has reverted back to just $2,000 per qualifying child. Another example would be the Dependent Care Credit, which last year was good up to a maximum of $8,000, is only good up to $1,221 this year,” said Fruh. “I would think what tax payers should prepare for is for their tax returns to look more like 2018 and 2019. So, really it’s reverted back to that type of year.”
Fruh explains they are trying to help tax payers with some of that refund shock they might experience this year.
“Here at Jackson Hewitt, we understand that you’re going to experience refund shock. So now until April 4th, for anyone who files with Jackson Hewitt, you’ll be entered into the Double Your Refund Sweepstakes and those lucky winners will have their refunds doubled up to $15,000.”
The filing deadline is Tuesday, April 18. If you’re planning on filing late, there are some steps you should take.
“One, you need to file an extension so you don’t get hit with the non-filing penalty. Two, if you believe you owe, you need to send whatever you can afford along with that extension to avoid penalties and interests for an under payment penalty,” said Fruh, adding that you should file as soon as possible to avoid identity theft. “Identity theft is an increasing problem with the IRS, and the sooner you file, the greater the chances that you will not experience identity theft with the IRS.”
With that in mind, look out for scam calls and phishing emails. Remember that the IRS will never ask for personal information through an email. The IRS will never contact you through social media.
If you owe money to the IRS, they will contact you through the mail.
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