Here are 3 key things to know before filing your 2023 tax return

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Here are 3 key things to know before filing your 2023 tax return

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The federal tax deadline is officially one month away for most filers — and experts say there are some key things to know this season.

As of March 1, the IRS received roughly

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, which is less than 40% of the 146 million

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, according to the agency.

So far, the average refund is $3,182, up about 5% from the same ******* last year. Of course, the average may change as more returns flood in.

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April 15 is the federal deadline to file and pay taxes owed for most filers. But parts of eight states

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have until June 17, according to IRS spokesperson Eric Smith.

“You get the extra time, automatically, meaning you don’t need to ask for it,” he said.

Here are three key things to know before the filing deadline:

1. You have several free tax-filing options

This season, taxpayers have several

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You may also opt for IRS Free File, a partnership between the IRS and a nonprofit coalition of eight software partners. For 2023, you can use Free File with an

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of $79,000 or less, up from $73,000 in 2022.  

Other free filing options include Volunteer Income Tax Assistance, Tax Counseling for the Elderly, MilTax and private company software.

2. See if you can claim a credit that millions ‘overlook’

Nearly 1 in 5 eligible taxpayers miss the

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“This is a lot of money” and millions of Americans “simply overlook it,” he told reporters on a press call in January.

For tax year 2023, the EITC is worth up to $7,430 per family with three or more children, up from $6,935 in 2022. Eligible workers between ages 25 and 64 without a qualifying child can receive up to $600.

Some filers may also be eligible for tax credits for buying a vehicle or making home energy improvements in 2023,

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.

3. There’s still time to lower your tax bill

After Dec. 31, “the toolbox of options is much smaller” for

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One of the first choices is typically pretax individual retirement account contributions, which may offer a deduction, depending on your workplace plan participation and income. Similarly, you could snag a tax break by making contributions to a spousal IRA.

The limit is $6,500 per account (with an additional $1,000 if you’re age 50 or older) and you have until the tax deadline for 2023 contributions. Depending on your income, you could also qualify for the

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for making those retirement contributions, worth up to 10%, 20% or 50% of your ********.

There’s also still time for 2023 health savings account contributions, assuming you have an eligible high-deductible health insurance plan. HSAs offer triple tax breaks with an upfront deduction, tax-free growth and tax-free withdrawals for eligible medical expenses. 

— CNBC’s Sharon Epperson contributed reporting.

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Tax refunds,Income Tax,Tax bill,Internal Revenue Service,Taxes,National taxes,Wealth,Personal saving,Tax planning,Government taxation and revenue,Personal finance,business news
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