GREENSBORO, N.C. — The federal tax deadline is steadily approaching. 2 Wants to Know spoke with tax experts Ryan Dodson of Liberty Tax Service and JW Degance Jackson Hewitt about common filing questions.
You have until April 18 to either complete your tax filing or apply for an extension. If your extension request gets approved, the deadline moves to Oct. 17. If you file for an extension, you have two options:
- Pay in full
- Set up a payment plan with the IRS
Keep in mind the payments will acquire interest.
LIVING IN ONE STATE, AND WORKING IN ANOTHER
If you earn income in one state but live in another, you must file a federal tax return for the state where you are living. You may also be required to file a state tax return where your employer is located or any state where you have a source of income.
Your refund may be a little smaller in 2023. The child tax credit is only $2,000 per child instead of last season's rate of $3,000 to $3,600 per child. The child and dependent care credit only allow up to 30% to be claimed this year versus 50% in years past. The $300 in charitable giving each taxpayer could write off on top of the standard deduction last year doesn't exist in 2023.
FILE FOR FREE
The IRS offers free e-filing, using brand name software. If you made $73,000 or less, you can file for free and pick the company you want to use.