The 2023 tax filing season, which starts on January 29, 2024 and concludes on April 15 (unless you file an extension), is when we are required to file our personal income tax return. While taxes are a simple process for many workers, it’s better to give yourself plenty of time to prepare for filing your tax return. Use this checklist as a guide to begin your preparation to avoid missing essential information.
Know your tax filing status
Your filing status determines tax filing requirements, how much taxes you owe for the year, and any deductions and tax credits for which you are eligible. The filing statuses to choose from are a single filer, head of household, married filing separately, married filing jointly, and a qualifying widow with a dependent. Each filing status comes with a different tax-bracket income threshold, standard deductions, and eligibility for tax credits. Your filing status can change as life changes, such as the birth of a new child or getting married, so you want to make sure you choose based on your current situation.
Federal Income Tax Brackets for Income Earned in 2023
| Taxable Income | Tax due for Single Filers tax bracket |
| Not over $11,000 | 10% of the taxable income |
| Over $11,000 but not over $44,725 | $1,100 plus 12% of the excess over $11,000 |
| Over $44,725 but not over $95,375 | $5,147 plus 22% of the excess over $44,725 |
| Over $95,375 but not over $182,100 | $16,290 plus 24% of the excess over $95,375 |
| Over $182,100 but not over $231,250 | $37,104 plus 32% of the excess over $182,100 |
| Over $231,250 but not over $578,125 | $52,832 plus 35% of the excess over $231,250 |
| Over $578,125 | $174,238.25 plus 37% of the excess over $578,125 |
| Taxable Income | Tax due for Married Filing Separately tax bracket |
| Not over $11,000 | 10% of the taxable income |
| Over $11,000 but not over $44,725 | $1,100 plus 12% of the excess over $11,000 |
| Over $44,725 but not over $95,375 | $5,147 plus 22% of the excess over $44,725 |
| Over $95,375 but not over $182,100 | $16,290 plus 24% of the excess over $95,375 |
| Over $182,100 but not over $231,250 | $37,104 plus 32% of the excess over $182,100 |
| Over $231,250 but not over $346,875 | $52,832 plus 35% of the excess over $231,250 |
| Over $346,875 | $93,300.75 plus 37% of the excess over $346,875 |
| Taxable Income | Tax due for Married Filing Jointly tax bracket |
| Not over $22,000 | 10% of the taxable income |
| Over $22,000 but not over $89,450 | $2,200 plus 12% of the excess over $22,000 |
| Over $89,450 but not over $190,750 | $10,294 plus 22% of the excess over $89,450 |
| Over $190,750 but not over $364,200 | $32,580 plus 24% of the excess over $190,750 |
| Over $364,200 but not over $462,500 | $74,208 plus 32% of the excess over $364,200 |
| Over $462,500 but not over $693,750 | $105,664 plus 35% of the excess over $462,500 |
| Over $693,750 | $186,601.50 plus 37% of the excess over $693,750 |
| Taxable Income | Tax due for Head of Household tax bracket |
| Not over $15,700 | 10% of the taxable income |
| Over $15,700 but not over $59,850 | $1,570 plus 12% of the excess over $15,700 |
| Over $59,850 but not over $95,350 | $6,868 plus 22% of the excess over $59,850 |
| Over $95,350 but not over $182,100 | $14,678 plus 24% of the excess over $95,350 |
| Over $182,100 but not over $231,250 | $35,498 plus 32% of the excess over $182,100 |
| Over $231,250 but not over $578,100 | $51,226 plus 35% of the excess over $231,250 |
| Over $578,100 | $172,623.50 plus 37% of the excess over $578,100 |
Source: Internal Revenue Service
Check your withholding
You will have completed a Wage and Tax Statement (W2) at the start of your permanent job, which determines how much tax your employer has withheld from your paycheck throughout the year. You included your tax status, the number of dependents you are claiming, and any non-employment income and deductions. However, your circumstances may have changed since you initially submitted the form, which can change your tax status, such as an additional dependent you are claiming, marriage, or the birth of a new child. If your W2 needs updating, contact your company’s Human Resources department before the end of this year to adjust your withholding tax.
Gather financial documents and forms
To file your tax return, you will need the social security numbers for yourself, your spouse, and all dependents you are claiming, including children and elderly parents.
Next, gather all of the documents that confirm the money you earned during the year. Employers must issue a Wage and Tax Statement (W2) before January 31. The W2 form includes income and tax withholding information you will need to file your tax return.
You could receive multiple 1099 Forms, depending on the types of payments you receive.
1099-MISC is for contract work, 1099-INT is for interest earned on your investments and savings, 1099-DIV is for dividends, and 1099-B is for broker-handled transactions.
If self-employed, you will need a 1099-NEC for Income for Non-Employee Compensation or a 1099-K for Third Party Network Transactions for payments made through a third-party such as PayPal, Venmo, or Amazon.
If you claimed unemployment benefits at any time during the year, you will be sent Form 1099-G, which shows the amount the state paid you.
Additional documents that you can start to gather or put aside as they arrive in the mail are your contributions to a traditional IRA or self-employment retirement account (SEP IRA), student loan and mortgage interest, and contributions to your health savings accounts (has), medical bills, property tax and mortgage interest, and charitable donations.
Should you itemize or take the standard deduction?
An itemized deduction is an expense that you incurred during the year that can be subtracted from your gross income to reduce your taxable income lower your tax bill. A standard deduction is the portion of your income not subject to tax that can reduce your tax bill. You can claim whichever method lowers your taxes the most, so be sure to weigh all of your options carefully.
Before deciding whether to itemize or take the standard deduction, you should total your deductions to see if they are above or below the current standard deduction. If your itemized deductions are above the standard deduction for your tax status, then you should itemize expenses on your tax return. You must have documents and receipts that back up the eligible expenses that you are itemizing.
For 2023, the standard deductions are:
| Single | $13,850 |
| Head of Household | $20,800 |
| Married Filing Separately | $13,850 |
| Married Filing Jointly | $27,800 |
Deductions and credits you can itemize on your tax return
If you choose to itemize your tax deductions, you will need to file Schedule A (Form 1040 or 1040-SR): Itemized Deductions. The list of expenses that IRS has approved to be itemized is extensive, so consider meeting with a financial advisor or tax preparation specialist for assistance.
Here are a few of the deductions you can itemize on your 2022 tax return:
- Mortgage interest on the first $750,000 — or $1 million, if you bought the home before Dec. 16, 2017
- American opportunity tax credit – claim all of the first $2,000 you spent on tuition, books, equipment and school fees plus 25% of the next $2,000, for a total of $2,500
- Lifetime learning credit – claim 20% of the first $10,000 you paid toward tuition and fees, for a maximum of $2,000
- Student loan interest deduction – up to $2,500 from your taxable income if you paid interest on your student loans.
- Charitable contributions – subtract the value of your charitable gifts — whether they’re in cash or property, such as clothes or a car — from your taxable income, up to 60% of your adjusted gross income.
- Medical and dental expenses (exceeding 7.5% of your adjusted gross income)
- State and local taxes – deduct up to $10,000 ($5,000 if married filing separately) for a combination of property taxes and either state and local income taxes or sales taxes.
- Child tax credit – up to $2,000 per child under 17, with $1,600 of the credit being potentially refundable.
- Child and dependent care tax credit – up to 35% of $3,000 of expenses for one dependent (generally a child under 13) or $6,000 for two or more dependents.
Click here to read the IRS instructions for Schedule A, which explain which of your expenses are deductible and where they should be listed on the form.
When to hire a tax consultant
After gathering your financial documents and receipts, you need to decide if you can file your tax return on your own or meet with a tax consultant to assess your tax situation and educate you on the tax deductions and tax credits you are qualified to claim for your filing status.
If you have a standard tax situation, you may feel confident filing your own taxes. However, hiring a tax consultant can be beneficial after a major life change like getting married or divorced, having a baby, buying or selling a home or business, experiencing a major health issue, or retiring. A tax consultant if you are self-employed, receive income from multiple sources, have investment losses, received an inheritance, or settled an estate.
To find a qualified tax consultant, the IRS has a searchable Directory of Federal Tax Return Preparers with Credentials and Select Qualifications. This is not a complete list of tax preparers but those with a Preparer Tax Identification Number (PTIN) who hold a professional credential or have obtained an Annual Filing Season Program Record of Completion from the IRS.
The IRS also provides additional information for various Individuals and Businesses and Self-Employed.
With tax season right around the corner, starting to gather your documents early can make you better prepared when you start filling out your tax return or meet with a tax consultant.
