How to Avoid Delays When Filing Your 2023 Tax Return

Both taxpayers and the IRS sometimes face challenges when filing and processing federal tax returns. To help you out, here are five tips that will help you avoid delays and ensure a smoother tax filing process for both sides.

Tips to help you avoid delays while filing taxes

1. Collect all tax documents before filing

To file the most accurate federal income tax return and avoid discrepancies, ensure you have received all the tax forms you need beforehand. You don’t want to omit a vital form accidentally! Make sure you’ve collected all the W-2s, Form 1099s, and any other tax documents detailing your income from last year before you file. Entering inaccurate info could result in costly delays and the potential to miss out on valuable tax credits.

2. E-file your return and use direct deposit to prevent refund delays

Filing paper returns by mail is more tedious for both parties. If you want your return processed quickly, e-filing is the way to go this tax filing season if you have that option.

And here’s another tip — if you want that tax refund money in your bank account as quickly as possible, opt for getting your refund via direct deposit. Combined, these two steps will help ensure swift processing of your tax return and your tax refund amount.

3. Find answers to tax questions online

It’s normal to have questions come up when you’re filing your income tax return. If you need a tax question answered, we recommend looking up the answer to your inquiry online rather than calling the Internal Revenue Service. Calling the IRS can often result in lengthy phone delays.

If you file with us at TaxAct®, we also offer Xpert Assist1 as an add-on feature, which allows you to connect with a tax expert to answer questions you may have about your tax return.

If you’d rather do your own research, try searching our blog for a helpful article or tax calculator related to your situation. The IRS also has a valuable collection of online tools that can assist you in everything from tracking your refund (Where’s My Refund?) to checking if you are eligible for certain tax deductions or credits.

1Xpert Assist is available as an added service to users of TaxAct’s online consumer 1040 product. Unlimited access refers to an unlimited quantity of expert contacts available to each customer. Service hours limited to designated scheduling times and by expert availability. Some tax topics or situations may not be included as part of this service. Review of customer return is broad, does not extend to source documents and not intended to be comprehensive; expert is available to address specific questions raised by customer. View full TaxAct Xpert Assist Terms and Conditions.
This article is for informational purposes only and not legal or financial advice.
All TaxAct offers, products and services are subject to applicable terms and conditions.

The post How to Avoid Delays When Filing Your 2023 Tax Return appeared first on TaxAct Blog.

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How Are the Child Tax Credits Different?

Updated for tax year 2023.

Wondering how the Child Tax Credit (CTC) works for your 2023 taxes? Here are the main things to note:

Max credit amount:

The Child Tax Credit’s maximum amount is still $2,000 per child (unchanged from 2022).

Child’s age:

Children must be under age 17 to qualify for the credit in tax year 2023.

Refundability:

Up to $1,500 of the Child Tax Credit is refundable for 2023, meaning you can claim up to that amount as a tax refund even if you don’t owe any income tax.

Advance monthly payments:

There were no advance monthly payments for the CTC in 2023.

Income phaseout threshold:

The credit amount you qualify for starts decreasing once your modified adjusted gross income (MAGI) hits a certain threshold: $400,000 for joint filers or $200,000 for all other filers.

Child Tax Credit (CTC) vs. Additional Child Tax Credit (ACTC) in 2023

The Additional Child Tax Credit (ACTC) is the refundable part of the Child Tax Credit. For 2023, this amounted to $1,500. This means if you owed less income tax than the credit amount, you could qualify to claim the Additional Child Tax Credit (ACTC).

The CTC continues to determine your eligibility for the ACTC. If you don’t qualify for the CTC, you can’t take the ACTC. To determine if you’re eligible, you can fill out Schedule 8812.

The Child and Dependent Care Credit

Looking for more information on the Child and Dependent Care Credit? Check out Form 2441 FAQs: The Child and Dependent Care Credit.

This article is for informational purposes only and not legal or financial advice.

The post How Are the Child Tax Credits Different? appeared first on TaxAct Blog.

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