PORTLAND, Ore. (KOIN) – With 2023 less than three weeks away, the tax filing season is just around the corner as experts say tax returns will look different compared to the last two years.
Sharing year-end tax tips, Mark Steber — Chief Tax Information Officer with Jackson Hewitt– says preparing tax information and filing early is best.
“Time is running out and every day that slips away there’s a little bit less that you can do but some of the time-tested and proven techniques of deferring income, if you have that opportunity as self-employed, and you can bill your clients after the first of the year, that can help you put off a little tax. If you have the ability to accelerate deductions, if you’re self-employed, small business, buy a few more of those business expenses if that makes sense,” Steber says.
The tax expert warns it’s especially important to file early in the coming tax season amid tax changes after the pandemic.
“Be aware of refund whiplash. Do not use last year’s tax return as a gauge for what to expect. A lot has changed in 2022 – a lot of the pandemic benefits went away, child credit’s less, dependent care credit [is] less, income credit change,” Steber warns. “Get started early, but don’t expect it to be like last year, this is not your last year’s tax return starting in about three weeks.”
Steber says by filing in late January or early February, this can give taxpayers more time to prepare tax information — noting any changes from the previous year’s filing such as cryptocurrency investments or small business expenses. Filing early also gives taxpayers a chance to get their refund back sooner, Steber says.
On top of these potential benefits, Steber also advises that by filing early, taxpayers can file before potential scammers file taxes pretending to be them.
Lastly, Steber says in the upcoming tax season, taxpayers should look out for changes in tax law and pandemic benefits that may have expired. He also advises taxpayers to seek help from a tax professional for any questions.