As the filing deadline looms, here's what you need to know about Tax Day 2023
As spring begins to bloom, it's time for one of the most important – and most dreaded – duties for every American: filing state and federal taxes for the previous year.
With the tax deadline just days away, here's a look at what to know about doing your taxes quickly and what the process entails for receiving your refund:
When are my taxes due this year?
Your 2022 tax returns for both Illinois and the federal government are due Tuesday, April 18. By federal law, the date in which taxes are due is set at April 15 with a few exceptions.
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Those exceptions are:
Whenever April 15 falls on a weekend. In the case of 2023, April 15 is a Saturday, thus pushing the tax day towards the following week.
Whenever April 15 falls on a holiday, whether that be state or federal. Some states honor Patriots' Day to honor the Battles of Lexington, Concord and Menotomy at the outset of the American Revolution around this part of the year. With that scheduled for April 17 – a Monday – and with state offices closed in those states, it would be difficult for last minute filings to be processed. The District of Columbia honors Emancipation Day – honoring the end of slavery in the district in 1862 – around this same time, with April 17 being the day that it is observed in 2023.
Why is April 15 Tax Day?
Blame the baby boom for this. in 1955, revisions to the tax code – through the Internal Revenue Code of 1954 – changed the date of Tax Day to April 15, one month later than what it had been since 1918, when the Revenue Act of that year made the due date for federal income taxes March 15.
According to a Fortune article from 2002, the Internal Revenue Service said that the change allowed them to spread out the peak workload, but a law professor at the University of Southern California stated that due to the massive increase in population that occurred post-World War II, the IRS needed more time to keep refunds. Thus, the due date for returns was pushed back one month.
What do I need to file my state and federal taxes?
For federal and state returns, one needs to have any income statements that they have, which serves as proof that one has earned the money that they said they did in the prior year.
Usually, this is a W-2 form or a 1099 form. Most people file a W-2 upon taking a job and a 1099 serves as proof of someone paying people over the course of the year, whether that be through rent, health care payments or interest.
The IRS also recommends that people have their Social Security number and any Taxpayer Identification Numbers handy in order to file their returns.
How can I file my state and federal taxes?
There are two ways to file your taxes – through the mail or electronically. The IRS recommends that people file their taxes online, whether that be through the IRS' own Free File system, commercial tax prep software such as TurboTax, eFile or H&R Block or an individual authorized IRS provider. The electronic filing provides for a quicker return, with the IRS saying that people can receive their refunds within three weeks.
As long as it is postmarked by April 18, people can file through the mail; however, it can take up to six months for returns to be processed. Those seeking to file by mail can mail their 1040 forms to these two addresses:
Without payment: Department of the Treasury, Internal Revenue Service, Kansas City, MO 64999-0002
With payment: Internal Revenue Service, P.O. Box 931000, Louisville, KY 40293-1000
People can usually file their state returns using the same commercial prep software or authorized providers they used to file their federal returns. The Illinois Department of Revenue also provides an electronic system to file state returns, MyTax Illinois, which the agency says has been updated to include a simple question and answer format and information from previous returns filed through the system.
"We encourage those taxpayers who have not yet filed to do so soon and file electronically with direct deposit to ensure the most efficient processing and issuance of any refunds," said IDOR Director David Harris.
IDOR said that 90% of all returns in Illinois were filed through electronic systems last year and through their meticulous verification of those returns, prevented more than $60 million in fraudulent returns from being processed.
What can I do if I need more time to file my taxes?
Sometimes, people need an extension on their tax returns. If that is the case, one needs to fill out Form 4868, which sends a request to get an extension for the prior year's federal income taxes. In Illinois, the form is IL-505-I, provided through IDOR's MyTax Illinois system.
Filing either of those forms is not an assurance that one will receive an extension. However, if one receives an extension, they have until Oct. 15 to file the prior year's return. Those in Illinois can get an automatic six-month extension on their returns, but they must pay what is owed by April 18 in order to prevent any penalties.
The deadline can also be extended for those working in a combat zone or living outside the United States.
Is there anything new that I need to be aware of before I file this year?
With no stimulus like the CARES Act or the American Rescue Plan being passed in 2022, no stimulus adjustments will be made to your tax return.
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However, the first impacts of the Inflation Reduction Act will be felt, namely in the numbers of IRS employees able to help you with your returns and the ability to claim a tax credit for clean-burning vehicles up to $7,500.
In addition, some tax credits will be returned to pre-pandemic levels, such as the Child Tax Credit – worth $2,000 for each qualifying child – the Earned Income Tax Credit and the Child and Dependent Care Tax Credit.
People also won't be able to deduct $600 from their returns for charitable donations like they did during the pandemic, if they take the standard deduction.
For 2022, more people will be eligible for a premium tax credit, allowing those within 100% of the federal poverty line to be eligible for assistance in paying premiums for health insurance issued through the federal Marketplace.
This article originally appeared on State Journal-Register: What you need to know about Illinois state and federal taxes for 2023
