What’s The Earliest Date To File Taxes In 2023? How To Get The Quickest (And Biggest) Tax Return

Key Takeaways

• The earliest the IRS accepts tax filings is the end of January. Expect an official date from the IRS sometime in mid-January.
• Filing your taxes as early as possible allows you to get a faster refund. It can also help protect you against identity theft.
• There are several different tax deductions and credits that can help you get the largest refund. See details below.

Gone are the days of large, pandemic-related tax credits. Your 2022 tax return is likely to look more like your 2019 tax return, but this doesn’t mean there aren’t ways to strategize and ensure maximum tax savings.

To get the biggest (and fastest) refund, you’ll want to file early, take advantage of eFile and direct deposit options, and review all the tax deductions or credits you might be eligible for.

First day to file your taxes

Technically, the first day to file your taxes is January 3, 2023. However, if you do it that early, the IRS won’t accept or process them. You also likely won’t have all the forms you need to complete your tax return yet, including your W-2 or 1099s for interest payments.

The IRS is usually ready to accept tax returns the last week of January, with the official announcement arriving sometime in the middle of the month.

For example, in 2022 (the 2021 tax year filing season,) the IRS announced on January 10 that it would start accepting tax filings effective January 24.

How to get the quickest return

Filing your return as soon as possible helps you get any refund you are eligible for faster. That said, there is more you can do to help your cause.

The fastest way to get your tax refund is to eFile and choose to receive your payment via direct deposit. You do have the option to split your deposit into up to three separate accounts.

After you file, you can use the Where’s My Refund tool to track progress.

Filing early also helps protect against fraud

Filing early provides the added benefit of helping protect you against fraud. Tax fraud was common before 2020, but tax fraud incidents have increased by 45% since the pandemic hit.

Committing tax fraud is easier than you may think. All someone has to do is file a return in your name with your Social Security number before you do. For attempts to amend or report the first return filed with the IRS as fraudulent, the burden of proof falls on you.

Getting your return in ahead of the fraudsters means that they won’t be able to complete the crime.

If you are a victim of tax identity theft, the IRS instructs you to call them ASAP and file form 14039. Calling can be problematic, as the IRS is known for long wait times. Getting through to a representative can take a lot of time.

Even after that, there isn’t a quick fix to tax identity theft. The best move is to avoid this situation altogether by filing early.

How to get the biggest refund

The path to the largest refund is unique to each individual based on their life circumstances. Here are some common credits and deductions that can help you lower your tax bill or receive a refund.

Do the math and see if itemizing is worth It

The Tax Cuts and Jobs Act (TCJA) of 2017 changed itemization for millions of Americans. Before, it used to make a lot of sense for homeowners to itemize as their mortgage interest payments and other expenses added up to more than the standard deductions.

But the TCJA pushed the standard deduction up dramatically. The standard deduction for the 2022 tax year is:

• $12,950 if you file single or married filing separately.
• $19,400 if you file as head of household.
• $25,900 if you are married and filing jointly.

This means gathering medical receipts and mortgage interest calculations might not do anything for you. But, if your itemized deductions would surpass these numbers, file Schedule A.

Claim your renewable energy credits

You might not be able to deduct your mortgage interest payments in any meaningful way, but you can still claim renewable energy credits. You should file Form 5695 if you have qualified costs for residential energy across any of these areas:

• Solar electric
• Solar water heating
• Small wind energy
• Geothermal heat pumps
• Biomass fuel
• Fuel cells

You’ll also use this form to deduct any energy-efficient home improvements you’ve made to your property.

These nonrefundable credits can help lower your tax bill to $0, but they won’t put any money back in your pocket.

Max Out Your 401(k)

Contributions to your 401(k) won’t show up anywhere on your taxes. They won’t even show up as a deduction. This is because even though they’re reported in Box 12 of your W-2, they’re also deducted from Box 1. This lowers your reportable income, so you’ll be taxed less.

The maximum 401(k) contribution for 2022 is $20,500. Usually, the last day to contribute to your 401(k) is December 31 of any given calendar year.

In rare instances, you may have until the tax filing deadline. But you’ll want to talk to your HR department immediately to see if that’s an option. In most cases, it isn’t, and contributing by the 31st is the safer bet.

As you look forward to 2023, know that the maximum contribution is going up to $22,500.

Get credit for child-related expenses

Your children can help you get many different tax credits. Since the TCJA passed, you can no longer claim dependent exemptions. However, you can claim the Child Tax Credit, which was expanded under the same law.

The Child Tax Credit is nonrefundable. That said, if you get your tax bill down to $0 and have credit left over, you can file for the Additional Child Tax Credit, which is refundable.

Other credits to look out for include the child and dependent care credit. This a nonrefundable credit for childcare expenses. You claim this credit with Form 2441.

Additionally, you can benefit from the American Opportunity Credit if your child is a college student. This credit can get you up to $2,500 for tuition expenses you paid for dependents in 2022. If you get your tax burden down to $0, 40% of this credit is refundable.

Get the Help of a Financial Professional

Filing your taxes as soon as the IRS accepts them provides benefits that include faster refunds and a lower risk of identity theft. However, filing taxes and maximizing deductions and credits can be complicated.

Even if you think your return is simple, a CPA might be able to clue you in on tax credits you didn’t know existed.

Bottom Line

Making sure to file your taxes as soon as possible has many benefits. Remember that talking to a CPA can ensure nothing slips through the cracks.

If you do get a tax refund, consider using it to invest and grow your net worth. Q.ai can help you build a portfolio that aligns with your risk tolerance and investing goals. Making your money work for you makes it possible to achieve your financial goals faster.

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