What to know as tax season nears: Get ready to file US, Mississippi taxes

A new year means the annual ritual of filing federal and state income-tax returns is upon us.

The Internal Revenue Service and the Mississippi Department of Revenue started accepting returns Jan. 29. The IRS expects nearly 168 million personal federal returns to flow in this year, with Mississippi likely to process around 1 million or more at the state level.

You might want to get an early jump if you’re expecting a refund. You also might want to file relatively early to thwart possible identity thieves who could try to file in your name to grab your refund, if they have access to your Social Security number and other personal details.

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For the most part, the tax rules for 2023 returns are fairly similar to what they looked like for 2022.

Who needs to file tax returns?

Most U.S. citizens and residents who earned money last year must file federal tax returns. Single people under age 65 who earned $12,950 or more must file, along with singles 65 or older who earned at least $14,700. Filing requirements kick in for married couples under age 65 who earned $25,900 or more.

If one spouse is 65 or older, filing is required with income above $27,300. For a married couple with both spouses 65 or older, it’s $28,700 in income or above. And there are various other thresholds for heads of household, married couples filing separately and surviving spouses, as explained more fully in IRS Publication 17, along with an online calculator to help determine that.

Seniors should keep in mind that some of their Social Security retirement benefits might be taxable. The IRS has an online frequently-asked-questions section for that.

But even if your income isn’t quite at or above those levels, you might want to file anyway, as you could qualify for the earned income tax credit or various other low-income credits.

Mississippi requires full- or part-time residents to file a state return here if they have adjusted gross income above $$8,300 (single or married filed separately) or $16,600 (married, filed jointly).

Where to get help with filing your taxes

All sorts of tax preparers can help you file your federal and state returns, and most charge a fee. These include certified public accountants, enrolled agents and preparers who haven’t earned those designations.

One study by the National Society of Accountants pegged the average cost for a federal 1040 and corresponding state return, without itemizing, at around $220. With itemizing and preparation of the federal Schedule A, the average cost rose to more than $320. Tax-preparation costs rise with more complex returns.

The IRS partners with various tax firms that provide free (or mostly free) online return-preparation help. This is the Free File Alliance, and it’s available to people with low or moderate incomes.

Some companies will help you file your federal return for free but might charge for state returns, so read the fine print.

Other free or low-cost programs include those offered by VITA, or Volunteer Income Tax Assistance, and TCE, or Tax Counseling for the Elderly. Check out irs.gov/VITA and irs.gov/TCE for more information.

What if I need a tax filing extension?

Both Mississippi and the federal government have pegged Monday, April 15 as the normal filing deadline for 2023 personal tax returns.

Extensions allow extra time to file but don’t provide delays for tax payments, which still are due April 15; otherwise, underpayment penalties and interest could apply. You should estimate your tax liability and pay any taxes owed by that date.

Taxpayers must file for extensions electronically or by mail by April 15 using Form 4868 (federal) or Form 80-106 (Mississippi). Filing for an extension won't increase your risk of facing an audit. Not filing at all, if you're required to do so, comes with more serious consequences.

Lower or no taxes in Mississippi?

Gov. Tate Reeves has continued his call for legislators to phase out the state's personal income tax over several years, and he is asking them to spend more money on economic development, highways and the judiciary.

The Legislature could consider the document as they decide how to spend state money. But House and Senate budget writers have a long history of largely ignoring budget recommendations from governors, even when they’re from the same party.

Mississippi is in the process of reducing its personal income tax under a law Reeves signed in 2022. In his new budget proposal, he said he wants to erase the tax by 2029.

Ross Reily can be reached by email at rreily@gannett.com or 601-573-2952. You can follow him on the X platform, formerly known as Twitter @GreenOkra1.

This article originally appeared on Mississippi Clarion Ledger: Taxes 2024 in Mississippi? When to file and what's new