TAx Filing date

What you should know.

by First Class Compliance on January 17, 2024

As the new tax season approaches, the flurry of paperwork and calculations begins anew. For those looking to optimize their financial standing here is some information to help navigate Tax Season 2024. The IRS has announced that individual income tax returns for 2023 can be filed starting January 29th, with a submission deadline of April 15th for most taxpayers.

Legislative Changes and Implications

Taxpayers might contemplate delaying filing closer to the April deadline due to ongoing negotiations in Congress. Democrats and Republicans are negotiating the reinstatement of tax breaks and the expansion of the child tax credit, which rose temporarily from $2,000 to $3,600 per child in 2021. The outcome of these negotiations might significantly affect tax liabilities for families and businesses. This bill might reinstate certain tax cuts while expanding the child tax credit, but its specifics are yet to be finalized.

Experts suggest staying updated on these negotiations as it could impact tax benefits and deductions. Holding off until February to file taxes to assess these changes might be a strategic move.

Standard Deduction and Future Planning

For the 2024 tax year, the income standard deduction has increased for single filers to $14,600 and for married couples filing jointly to $29,200. While this change won't immediately impact 2023 filings, it's essential to factor it into financial planning for the upcoming year to maximize deductions and reduce taxable income.