by: Alysha Pruitt Harvey, MAcc, EA, CTS, CTC, CTP, People Advisor

The 2023 tax filing season comes with its unique set of challenges and changes that could affect how you file your taxes. Whether you're a teenager with a part-time job, a young entrepreneur, or just someone trying to help your family understand the tax maze, it's important to know what's new and what to watch out for. Here's a breakdown in simple terms:

1. COVID-19 Tax Breaks Are Mostly Gone

Remember those extra benefits during the pandemic, like stimulus checks and special tax deductions? Well, most of those are not available for the 2023 filing season. This means you might see some differences in your tax situation, especially if you were counting on those breaks to lower your tax bill.

2. Standard Deduction Increase

The good news is that the standard deduction—basically, the amount of income you don’t have to pay taxes on—has gone up a bit. For singles, it's increased to $13,850, and for married couples filing together, it's $27,700. This is like getting a little boost in your tax-free income, which is always nice.

3. Remote Work Deductions

With more people working from home, there's a lot of talk about deducting home office expenses. However, this is mainly for folks who are self-employed. If you’re working a regular job from home, you might not get to claim your home office space on your taxes. It's a bit of a bummer for remote workers who are not self-employed.

4. Cryptocurrency Reporting

If you've dabbled in cryptocurrency, be prepared for some extra work. The IRS is getting serious about tracking crypto transactions. You're expected to report any buying, selling, trading, or earning of crypto. Ignoring this can lead to headaches and fines, so it’s best to keep good records of your crypto activity.

5. Child Tax Credit Returns to Normal

During the pandemic, the Child Tax Credit was beefed up to help families out. For the 2023 tax year, it’s back to the usual amount: up to $2,000 per qualifying child, which is less than the pandemic boost. This means families might get a smaller refund than they did during the pandemic years.

6. Watch Out for Tax Scams

Scammers are always looking for opportunities, especially during tax season. Be super cautious about sharing your personal information, especially if someone calls or emails you claiming to be from the IRS. Remember, the IRS usually contacts people by mail, not phone or email.

7. Get Help If You Need It

Taxes can be confusing, and it’s okay to ask for help. There are free resources and tax preparation services for people who qualify. Don’t wait until the last minute, though, because these services can get really busy as the tax deadline approaches.

In conclusion, the 2023 tax filing season has its quirks, with the end of some COVID-19 benefits, adjustments in standard deductions, and new rules around things like cryptocurrency. Staying informed and prepared is your best defense against surprises. And remember, when in doubt, it's always a good idea to consult a tax professional or use reliable tax preparation software to guide you through the process.

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