GRAND RAPIDS, Mich. — You can file your taxes as early as Monday, but this year there are a few changes to how you file that could save you a little money.
Grand Valley State University's School of Accounting Professor Jonathan Brignall joined FOX 17 Weekend Morning News to provide some tips on what to keep an eye out for this tax season.
Dates to keep in mind this tax season:
- January 29: The official state date of tax season where the Internal Revenue Service (IRS) begins processing and accepting tax returns. Whether you plan on filing online or on paper, you don't have to wait until this date to get started. If you’re using one of the hundreds of different tax softwares out there or going through a tax professional, many will hold your taxes ahead of the opening date.
- April 15: This is the deadline for most people filing their taxes. If you need an extension, you’re going to want to keep this deadline in mind too, because it’s also the deadline to request one. Personal federal tax returns as well as any taxes owed are due this day. The only exception to this is for filers in Maine and Massachusetts who have until April 17 to turn in their taxes.
- October 15: Deadline for extension filers.
Direct File: what it is, how it works, and who can use it
Direct File is the government-run way to file your federal tax returns free of charge. After conducting a cost and feasibility study earlier last year, the IRS is launching the program this year as a pilot program, potentially looking to expand it in the future. If this year’s tax season goes smoothly, the IRS will expand the program, potentially rivaling similar programs offered by companies like TurboTax. This year, the IRS is opening the program for some federal and state workers, and then later in March, letting in some private sector workers. This year, the program is only available in 12 states, and Michigan isn’t one of them.
What makes this new program different is it haves no income threshold. Previously, if you made $79,000 you had the option to use the “Free File Program” from the IRS, a program which sees historically low use among filers. In 2022, the median income for dual filers in Michigan was $70,163. You can find the Free File Program here.
Tax credits to look out for
If you invested in renewable energy in 2022 or 2023, you might be eligible for a new tax credit: the Residential Clean Energy Credit. If you generate energy from solar, wind, and/or geothermal sources, you might qualify. There are limitations to this credit, specifically if you own multiple properties, but generally there are two restrictions:
1. The improvements have to be made in your primary residence;
2. The credit does not apply to improvements made on secondary properties or business properties. That includes properties you rent out.
For more information on the Residential Clean Energy Credit, click here
If you were one of the nearly one million Americans who switched to an electric vehicle in 2023, you could qualify for a $7,500 tax credit. The only stipulations from the IRS include buying the EV new, and not buying it for resale. Some income-based restrictions are in place too that could disqualify you:
- If you and your spouse file jointly and earn $300,000 or more;
- if a head of household earns $225,000 or more or;
- earns $150,000 or more for all other filers.
For specifics on how battery capacity, mineral requirements, and weight could impact how much you claim, click here.
