Strategic Patience: Why Waiting to File Your 2023 Taxes Could Save You Money

Strategic Patience: Why Waiting to File Your 2023 Taxes Could Save You Money

E-Filing Opened 1/29/24. The filing season for individual returns officially began a few days ago, with the new beta IRS free-file system having opened earlier on 1/12/24. Since January 29th, the IRS has been accepting and processing returns.

Despite the start of the season, some of our colleagues are deliberately delaying filing the first return.

The reason? Congress.

There's a tax bill currently in the legislature that could bring retroactive tax changes to 2023, potentially including:

- Increased amounts for the child tax credit

- Full expensing of R&D items- Increased bonus depreciation

- Raising the threshold for issuing 1099-NECs from $600 to $1000

- Relaxed limits on deducting interest expense

These changes could significantly impact some tax returns, potentially leading to lower tax liabilities. Therefore, it's prudent to wait and see the outcome of this bill before proceeding with filing.As of now, we hope that by next week the bill will have been fully voted on, providing clarity on whether these changes will affect the 2023 tax filing season.

Stay tuned as we monitor the developments. Need guidance on the right time to file? Contact Verity CPAs at 808.546.5026 ext. 303 or info@verity.cpa. #TaxSeason2024 #SmartFiling #HawaiiAccounting