The 2024 tax filing season officially begins today (27th) with the Internal Revenue Service (IRS) starting to accept individual federal tax returns for the 2023 income year.

The IRS anticipates receiving over 140 million individual tax returns this season. Unless a filer resides in a disaster-affected area with special provisions, the tax filing deadline remains Tuesday, April 15. Returns must be submitted online or postmarked by midnight on the deadline.

Tax Season Timeline
To ensure timely receipt of refunds, Korean CPAs advise filing taxes online (e-file) and opting for direct deposit into a bank account. Filing electronically allows for the fastest refunds, eliminates the risk of mailing errors, and provides protection from the numerous scams that proliferate during tax season.

According to the IRS, early filing is advantageous. Filing taxes early gives the IRS more time to process returns, avoiding delays that typically occur when returns are submitted close to the April 15 deadline due to high volume. Late filers may face penalties of up to 25% of unpaid taxes. If you cannot file by the deadline, you may request an extension, pushing the deadline to October 15. However, an extension to file does not extend the deadline to pay taxes owed.

How Long Does a Tax Refund Take?
The IRS typically issues refunds within 21 days of receiving a return if no issues arise. Filing electronically and selecting direct deposit can result in refunds being processed in as little as 10 days.

However, refunds may be delayed if there are income and expense discrepancies or complex deductions requiring additional review. Taxpayers claiming the Earned Income Tax Credit (EITC) or Additional Child Tax Credit (ACTC) are encouraged to file as early as possible, as the IRS prioritizes processing these credits.

The average refund amount for 2024 is expected to be approximately $3,138, similar to previous years. The IRS reported that 105 million taxpayers received refunds for the 2023 income year.

Essential Documents for Filing
Employees will receive W-2 forms from their employers by the end of January. Independent contractors must receive 1099 forms for tax reporting by February 15. Additionally, documents related to bank interest, mortgage interest, and stock transactions should be gathered.

Most taxpayers will claim the standard deduction, which has been adjusted for inflation. For joint filers, the standard deduction increased by $1,500 to $29,200. For single filers and married individuals filing separately, it rose by $750 to $14,600. For heads of household, the standard deduction increased by $1,100 to $21,900.

IRS Free Tax Filing Program
The IRS has expanded its free online tax filing program, "Direct File," this year. The number of participating states increased from 13 last year to 25, including states with significant Korean populations like California, New York, Nevada, Washington, Oregon, New Jersey, Florida, Texas, Maryland, Massachusetts, and Pennsylvania.

The program is accessible through the IRS website by creating an account. It is available for individuals with an adjusted gross income (AGI) of $84,000 or less.

Experts strongly recommend consulting a CPA if you own a business or have children. CPAs can identify deductions and benefits tailored to your unique situation, often outweighing the cost of their services.

Refund status can be checked in real-time on the IRS website at www.irs.gov/refunds.

<Hwandong Cho>