Tax Filing Basics and Changes for 2023

1. Filing Deadlines:
   • April 15 is the deadline for most taxpayers to file and pay taxes, with exceptions for certain states and federal disaster areas.
   • Extensions until October 15 are available for filing, but not for paying taxes owed.
2. Filing Status:
   • Married couples often benefit from filing jointly, but circumstances may warrant filing separately.
   • Separate filing can protect against liability for a spouse’s tax issues, but may affect eligibility for certain tax breaks.
3. Standard Deduction:
   • Increased standard deduction amounts for 2023 offer potential tax savings for most taxpayers.
   • Additional deductions are available for those 65 or older, or blind.
4. Charitable Donations:
   • Qualified Charitable Distributions (QCDs) allow taxpayers 70½ or older to transfer funds directly from an IRA to a charity without including it in their AGI.
   • Donor-advised funds are not eligible for QCDs.
5. Disaster Damages:
   • Taxpayers affected by disasters can deduct unreimbursed casualty losses for the current or previous tax year.
   • Filing an amended return for the previous year may be beneficial in certain cases.
6. Updates for 2023:
   • Tax brackets and income limits have been adjusted for inflation.
   • Home energy credits have been revamped and expanded, with the lifetime limit removed.
   • The foreign earned income exclusion amount has increased for Americans living and working abroad.

Overall, understanding these basics and changes for the 2023 tax year can help taxpayers navigate the filing process and maximize potential savings.