INDIANAPOLIS— Tax season officially kicked off on January 29, which means you can now file your state and federal taxes.
In today’s Tax Tip Tuesday, the Internal Revenue Service says you need to get organized.
Gather all of your tax records including:
- Forms W-2 from your employer(s)
- Forms 1099 from banks, issuing agencies and other payers including unemployment compensation, dividends, pension, annuity or retirement plan distributions
- Form 1099-K, 1099-MISC, W-2 or other income statement if you worked in the gig economy
- Form 1099-INT if you were paid interest
- Other income documents and records of digital asset transactions
- Form 1095-A, Health Insurance Marketplace Statement, to reconcile advance payments or claims Premium Tax Credits for 2022 Marketplace coverage
- IRS or other agency letters
- CP01A Notice with your new Identity Protection PIN
The IRS expects more than 128 million individual tax returns to be filed by the due date, April 15.
“It's good to start early because the better prepared you are to file your tax return, the better the process is going to go. You're going to less likely have errors on your return."
The IRS is adding improvements this year including expanding help in-person and online, improving the Where’s My Refund tool, as well updating the online IRS account to include chat and options to schedule and cancel future payments.
Indiana Department of Revenue also provided these tax-related updates:
- The dependent exemption has increased from $1,500 to $3,000 for the first taxable year in which a particular exemption is allowed under Section 151(c)(1)(B) Internal Revenue Code (as effective January 1, 2004).
- All military pay for reserve members of the United States armed forces and National Guard is exempt from income tax for taxable years 2023 forward.
- Investors can provide qualified investment capital to veteran-owned businesses and women-owned enterprises and qualify for the higher maximum amount of venture capital investment credit.
- The College Choice 529 Plan Credit has increased from a maximum of $1,000 to $1,500 for a married couple filing jointly or an unmarried individual, and it increased from $500 to $750 for those married filing separately.
- The Indiana Earned Income Tax Credit is now 10% of the federal credit, with a prorated credit available for nonresident individuals.
- The Career Scholarship Account program has a new income tax deduction for grants received and used towards qualified expenses under IC 20-51.4.
