January 23, 2023 — IRS Official Start Date for the 2023 Tax Filing Season

The Internal Revenue Service has announced that January 23, 2023 will be the official start date of the 2023 tax filing season.  This is the first date that the IRS will be processing 2022 tax returns.  The deadline this year is April 18, 2023, as per the IRS website:

The filing deadline to submit 2022 tax returns or an extension to file and pay tax owed is Tuesday, April 18, 2023, for most taxpayers. By law, Washington, D.C., holidays impact tax deadlines for everyone in the same way as federal holidays. The due date is April 18, instead of April 15, because of the weekend and the District of Columbia's Emancipation Day holiday, which falls on Monday, April 17.

Taxpayers requesting an extension will have until Monday, October 16, 2023, to file.

This year, taxpayers and tax professionals should see improved service and processing times.   This is due to the passage of the Inflation Reduction Act, which has resulted in the IRS hiring more than 5,000 new telephone assistors, as well as more in-person staff to provide support to taxpayers.

Click here to view the complete article on the IRS website.

Fill Your Days!

Fill Your Days!  This is my advice to people.  I have been saying it for quite some time.

Nobody knows how long they are going to live, but yet, so many people waste time... not just moments of time, but sometimes days, weeks, and even longer!

When you are on your deathbed, no amount of money will add any significant, quality of life, time to your life.

Carpe Diem!  Seize the day!  Quit procrastinating!  Do something meaningful!

Recently, this was in my fortune cookie:

A day is a span of time no one is wealthy enough to waste.

 

While nobody knows just how long they are going to live, it is always interesting to check your life expectancy on the Social Security, Actuarial Life Table.

Carpe Diem, and fill your days, my friends!

Kiplinger Article on Maximizing Social Security Benefits

Social Security can be a tricky topic, and many people have many misunderstandings on how it actually works. When considering how to maximize Social Security Survivor Benefits for a spouse, there are several factors that must be taken into consideration. Kiplinger has a great article that explains in detail what you need to know if you need to maximize Social Security Survivor Benefits.

Click here to link to the article.

“my Social Security” Account

With "my Social Security" you can set up an online account with the Social Security Administration to handle several tasks online.

According to the Social Security Administration website, your "my Social Security" account can be used for the following:

If you do not receive benefits, you can:

  • new Request a replacement Social Security card if you meet certain requirements;
  • new Check the status of your application or appeal.
  • Get your Social Security Statement, to review:
    • Estimates of your future retirement, disability, and survivors benefits;
    • Your earnings once a year to verify the amounts that we posted are correct; and
    • The estimated Social Security and Medicare taxes you’ve paid.
  • Get a benefit verification letter stating that:
    • You never received Social Security benefits, Supplemental Security Income (SSI) or Medicare; or
    • You received benefits in the past, but do not currently receive them. (The letter will include the date your benefits stopped and how much you received that year.); or
    • You applied for benefits but haven’t received an answer yet.


If you receive benefits or have Medicare, you can:

IRS Increases the Maximum Educator Expense Deduction in 2022

The Internal Revenue Service recently announced that teachers and other educators will be able to deduct up to $300 of out-of-pocket classroom expenses for 2022 when they file their federal income tax return next year.    This deduction can be claimed even if the educator is claiming the standard deduction.  An eligible educator is defined as a teacher, instructor, counselor, principal, or aide who works at least 900 hours during the school year in grades K-12.  This deduction applies to educators at both public and private schools.  Qualified expenses do not include the cost of home schooling or for nonathletic supplies for courses in health or physical education.  The IRS reminds educators claiming this deduction to keep good records, including receipts, cancelled checks, and other documentation.

While the educator expense deduction was enacted in 2002, this is the first time that the annual limit of $250 per year has been increased.  The limit will increase in $50 increments in future years, based on inflation adjustments.  Eligible educators who file a joint return with another eligible educator can deduct $600 ($300 per educator).

Eligible educators can deduct the un-reimbursed cost of:

  • Books, supplies, and other materials used in the classroom;
  • Equipment, including computer equipment, software, and services;
  • COVID-19 protective items to stop the spread of the disease in the classroom, including: face masks, disinfectant for use against COVID-19, hand soap, hand sanitizer, disposable gloves, tape, paint or chalk to guide social distancing, physical barriers, such as clear plexiglass, air purifiers, and other items recommended by the Centers for Disease Control and Prevention; and
  • Professional development courses related to the curriculum they teach or the students they teach.   Note that the IRS cautions that, for these expenses, it may be more beneficial to claim another educational tax benefit, especially the lifetime learning credit. For more information, please see: Publication 970, Tax Benefits for Education, particularly Chapter 3.

For more information, please visit: https://www.irs.gov/newsroom/new-school-year-reminder-to-educators-maximum-educator-expense-deduction-rises-to-300-in-2022#:~:text=For%202022%2C%20an%20eligible%20educator,than%20%24300%20for%20each%20spouse.

 

Taxpayer Bill of Rights

IRS Increases Mileage Rate for Last Six Months of 2022

The Internal Revenue Service has increased the Optional Standard Mileage Rate by four cents to $0.625 per mile.

Similarly, the Internal Revenue Service has increased the mileage rate for deductible medical or moving expenses (available for active-duty members of the military) by four cents to $0.22 per mile.

The charitable mileage rate remains unchanged at $0.14 per mile.

Citing increased fuel costs, the IRS also noted that other factors figure into the increased mileage rates, including items such as depreciation, insurance, and other fixed and variable costs.

For more information, see:
https://www.irs.gov/newsroom/irs-increases-mileage-rate-for-remainder-of-2022