In 2023, the individuals responsible for developing tax software experienced a relatively uneventful year. However, they still had to incorporate the modifications made to the US tax code, which could potentially impact your tax refund. The Internal Revenue Service (IRS) made its customary adjustments for inflation, affecting aspects such as the standard deduction and tax rates. Nevertheless, these changes were relatively minor.
There were slight increases in the limits for retirement accounts, such as 401(k)s and IRAs. Additionally, 2023 marked another transitional year for the reporting threshold of form 1099-K. Third-party payment processors are not obligated to issue this form unless a businessperson received over $20,000 and had more than 200 transactions during the tax year.
When utilizing an online tax service to prepare and file your taxes, rest assured that the application is aware of and considers all these changes. This eliminates the need for you to worry about them.
Despite these alterations, the top tax preparation and filing services strive to maximize your tax refund. We conduct tests on the self-employment versions of tax software to determine which ones are the most effective, given the increasing number of individuals engaging in side gigs or managing their own businesses.
Continue reading beyond our recommended choices to discover additional information regarding crucial tax inquiries. This includes understanding whether you qualify for free tax filing and gaining insights into the taxation of cryptocurrency activity.
