CandM Accounting & Financial Services

IRS Announces the Official Start of the 2023 Filing Season

WASHINGTON − The Internal Revenue Service announced today that the nation's tax season will start on Monday, Jan. 23, 2023, when the tax agency will begin accepting and processing 2022 tax year returns.

The January 23 start date for individual tax return filers allows the IRS time to perform programming and testing that is critical to ensuring IRS systems run smoothly.

While the IRS will begin accepting returns Jan. 23, the IRS cannot issue a refund that includes the Earned Income Tax Credit or Additional Child Tax Credit (ACTC) before mid-February. This is due to the 2015 PATH Act law passed by Congress, which provides this additional time to help the IRS stop fraudulent refunds from being issued.

Where’s My Refund? should show an updated status by Feb. 18 for most early Earned Income Tax Credit and Additional Child Tax Credit filers. The IRS expects most early EITC/ACTC related refunds to be available in taxpayer bank accounts or on debit cards by Feb. 28, 2023.

If your taxes increased because of the Advance Premium Tax Credit, the IRS issued this today as relief. No need to file an Amended Return if you have already filed and if you have yet to file, the IRS has covered.

IR-2021-84, April 9, 2021

WASHINGTON — The American Rescue Plan Act of 2021 suspends the requirement that taxpayers increase their tax liability by all or a portion of their excess advance payments of the Premium Tax Credit (excess APTC) for tax year 2020. A taxpayer's excess APTC is the amount by which the taxpayer's advance payments of the Premium Tax Credit (APTC) exceed his or her Premium Tax Credit (PTC).

The Internal Revenue Service announced today that taxpayers with excess APTC for 2020 are not required to file Form 8962, Premium Tax Credit, or report an excess advance Premium Tax Credit repayment on their 2020 Form 1040 or Form 1040-SR, Schedule 2, Line 2, when they file.

Eligible taxpayers may claim a PTC for health insurance coverage in a qualified health plan purchased through a Health Insurance Marketplace. Taxpayers use Form 8962, Premium Tax Credit to figure the amount of their PTC and reconcile it with their APTC. This computation lets taxpayers know whether they must increase their tax liability by all or a portion of their excess APTC, called an excess advance Premium Tax Credit repayment, or may claim a net PTC.

Taxpayers who have already filed their 2020 tax return and who have excess APTC for 2020 do not need to file an amended tax return or contact the IRS. The IRS will reduce the excess APTC repayment amount to zero with no further action needed by the taxpayer. The IRS will reimburse people who have already repaid any excess advance Premium Tax Credit on their 2020 tax return. Taxpayers who received a letter about a missing Form 8962 should disregard the letter if they have excess APTC for 2020. The IRS will process tax returns without Form 8962 for tax year 2020 by reducing the excess advance premium tax credit repayment amount to zero.

The IRS is taking steps to reimburse people who filed Form 8962, reported, and paid an excess advance Premium Tax Credit repayment amount with their 2020 tax return before the recent legislative changes were made. Taxpayers in this situation should not file an amended return solely to get a refund of this amount. The IRS will provide more details on IRS.gov. There is no need to file an amended tax return or contact the IRS.

For information on completing Form 8962 in the program, visit this TaxSlayer Pro Knowledgebase article.

You can pay at time of service or have payment directly deducted from your refund (additional bank fees apply).

We can help with all of your accounting needs!

The IRS will start accepting electronic returns Monday, January 27, 2020.

This means the first batch of refunds should be released February 6, 2020.

Visit us at www.candmaccounting.com

September 15 is around the corner! This is the last week to get business tax information to us for processing by the deadline!