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WASHINGTON — The Internal Revenue Service today announced Monday, Jan. 29, 2024, as the official start date of the nation's 2024 tax season when the agency will begin accepting and processing 2023 tax returns.
The IRS expects more than 128.7 million individual tax returns to be filed by the April 15, 2024, tax deadline.
Although the IRS will not officially begin accepting and processing tax returns until Jan. 29, people do not need to wait until then to work on their taxes if they're using software companies or tax professionals. For example, most software companies accept electronic submissions and then hold them until the IRS is ready to begin processing later this month. IRS Free File will also be available on IRS.gov starting Jan. 12 in advance of the filing season opening. The IRS Direct File pilot will be rolled out in phases as final testing is completed and is expected to be widely available in mid-March to eligible taxpayers in the participating states.
The IRS warns taxpayers to be on the lookout for a new scam mailing that tries to mislead people into believing they are owed a refund.
The new scheme involves a mailing coming in a cardboard envelope from a delivery service. The enclosed letter includes the IRS masthead with contact information and a phone number that do not belong to the IRS and wording that the notice is "in relation to your unclaimed refund.”
Employee Retention Credit Scums
Cautionary Reminder: Businesses and tax-exempt groups should be vigilant against misleading claims related to the Employee Retention Credit (ERC), also known as the Employee Retention Tax Credit or ERTC. The IRS highlights deceptive advertising and promotions, cautioning against aggressive tactics that misrepresent eligibility. Watch out for schemes charging upfront fees, failing to disclose reductions in wage deductions, and carefully review official requirements before claiming the ERC.
Tax credits and deductions change the amount of a person's tax bill or refund. People should understand which credits and deductions they can claim and the records they need to show their eligibility.
Tax credits
Tax Credits 101: A tax credit cuts a taxpayer's income tax bill dollar-for-dollar on their return. Some, like the Earned Income Tax Credit, are refundable, allowing individuals to receive the excess credit as a refund if their tax bill is lower. To claim, keep records proving eligibility and assess potential credits for the upcoming tax year now."
Deductions
"Deductions lower a taxpayer's taxable income before calculating owed taxes. Most opt for the standard deduction, which varies yearly due to inflation and depends on factors like filing status, age, blindness, and dependency status. Some, however, choose to itemize if it offers greater tax reduction, typically when itemized deductions exceed the standard deduction."
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