For many people, 2023 has been a challenging year for financial and tax planning. Here's everything you need to know to complete your taxes accurately and efficiently this year.
• You can file your taxes using the standard Form 1040 or, if you are age 65 and older, you can use the newer Form 1040-SR, which has a larger font and includes a Standard Deduction table printed right on the form.
• If you’re a nonresident alien with a US source income, you can use Form 1040-NR to report different types of income and claim deductions and tax credits.
• Tax year 2023 has seven tax brackets, ranging from 10% to 37%, depending on your income. If your taxable income exceeds the upper limit of one bracket, then the money above that is taxed at the rate of the next bracket, and so on up to the top rate of 37%.
Tax filing answers
Filing your taxes for the prior year is often top of mind when the new year rolls around. Fortunately, this comprehensive guide can help you get through filing 2023 taxes, whether you file on your own or get help from a tax expert. Here's what you need to know.
Deadline for filing 2023 taxes
One of the first questions most people want an answer to is: When are taxes due?
For 2023 tax returns — those filed in 2024 — the deadline to file your return and pay any tax due is April 15, 2024. Individual states typically follow the IRS deadline but if you are unsure then check your state government’s website for more information.
April 15, 2024, is also the deadline for requesting an individual tax return extension and making 2023 IRA contributions.
Filing an extension will postpone your filing deadline until October 15, 2024. Just remember that even if you file an extension to October, any amount of tax that you owe for the year is still due on the earlier April deadline.
If you make estimated quarterly tax payments, the deadline to make your first estimated payment toward 2024 taxes is also April 15, 2024. Even if you wait until the last minute to file your 2023 tax return or file for an extension, you'll still need to calculate your first 2024 quarterly estimate and make a payment by the April deadline.
Form 1040 options
Form 1040 is the federal income tax form that almost all individuals use to report their income to the IRS, claim tax deductions and credits, and calculate their refunds or tax due for the year.
There are two main versions to choose from:
- Form 1040. The standard Form 1040 is the version most taxpayers will use. While Form 1040 is only two pages long, many people need to attach additional forms and schedules to their tax returns to report different types of income and claim deductions and tax credits.
- Form 1040-SR. Form 1040-SR is a newer version of Form 1040 for people age 65 and older. You can use this form whether you itemize or claim the standard deduction. The basic difference between this version and the standard Form 1040 is that Form 1040-SR uses a larger font and includes a standard deduction table printed right on the form.
There is also the less common Form 1040-NR that is used by nonresident aliens who have U.S. source income and Form 1040-X that is used to amend tax returns that you have already filed but need to be corrected.
TurboTax Tip: If you purchased health insurance through the federal exchange in 2023 and qualified for a larger subsidy (so your payments didn’t exceed 8.5% of your income), but didn’t receive the subsidy during the year, you may be able to claim it as a tax credit on your 2023 tax return.
2023 Standard Deductions
The 2023 standard deduction increases to $13,850 for single taxpayers and married taxpayers who file separate returns. Married couples filing jointly can claim an amount twice that size at $27,700. Heads of household can claim a standard deduction of $20,800.
Those that are 65 and older, or blind, or both 65 and older and blind, receive additional standards deductions. For 2023 the addition for married couples filing jointly is $1,500 and $1,850 for those filing as single or head of household. These additional amounts add together so that a married couple filing jointly with both being 65 or older would get a total of $3,000 in additional standard deduction. If both are also blind, then the additional amount is $6,000.
2023 tax brackets
Federal income taxes are progressive, meaning people with higher taxable incomes pay a higher percentage of their income to the federal government than people who earn less. One of the ways the tax system achieves this is through tax brackets.
There are seven tax brackets for the 2023 tax year, ranging from 10% to 37%. Your tax bracket, also known as your marginal tax rate, is the tax rate (bracket) that your last taxable dollar falls into and depends on your total taxable income. Here are the 2023 tax brackets for taxes due April 15, 2024:
|Tax Rate||Single||Head of Household||Married Filing Jointly||Married Filing Separately|
|10%||Up to $11,000||Up to $15,700||Up to $22,000||Up to $11,000|
|12%||$11,001 - $44,725||$15,701 - $59,850||$22,001 - $89,450||$11,001 - $44,725|
|22%||$44,726 - $95,375||$59,851 - $95,350||$89,451 - $190,750||$44,726 - $95,375|
|24%||$95,376 - $182,100||$95,351 - $182,100||$190,751 - $364,200||$95,376 - $182,100|
|32%||$182,101 - $231,250||$182,101 - $231,250||$364,201 - $462,500||$182,101 - $231,250|
|35%||$231,251 - $578,125||$231,251 - $578,100||$462,501 - $647,850||$231,251 - $346,875|
|37%||$578,126 and Up||$578,101 and Up||$693,750 and Up||$346,875 and Up|
For example, for 2023, if you're a single filer with a taxable income of $60,000 after taking all of your applicable adjustments and deductions, the first $11,000 of your income will be taxed at 10%. From $11,001 to $44,725, you'll be taxed at 12%. On the remaining $15,275, you'll be taxed at 22%.
Use our Tax Bracket Calculator to estimate your taxable income for 2023 and figure out which tax bracket you're in.
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