Internal Revenue Service

If you're expecting a tax refund in 2023, it may be smaller than this year's payment, according to the IRS. Typically, you get a federal refund when you've overpaid yearly taxes or withheld more than the amount you owe.Your annual balance is based on taxable income, calculated by subtracting the greater of the standard or itemized deductions from adjusted gross income."Refunds may be smaller in 2023," the IRS said in a November news release about preparing for the upcoming tax season. "Taxpayers will not receive an…

Bill Oxford | E+ | Getty ImagesIf your tax refund is still in limbo, there's good news: Your balance may be accruing interest, and the rate increases to 7% from 6% on Jan. 1, according to the IRS.As of Nov. 18, there were 3.4 million unprocessed individual returns received in 2022, including filings for previous tax years, the agency reported.related investing newsThese assets have yields not seen in years — here’s what to know about preferred stocksAdjusted quarterly and tied to the federal short-term rate, the 7%…

New business formation has boomed, and that means more new business owners than ever are dealing with tax season and potential tax nightmares. While there aren't that many tax changes that will affect small businesses in the upcoming tax season, what is new — coupled with evergreen tax issues that tend to trip up small businesses — could cause headaches if owners aren't careful.For starters, there's a big tax bill coming due for many business owners related to the pandemic, well ahead of the April 2023 federal income tax…

The Internal Revenue Service building in Washington.SAUL LOEB/AFP via Getty ImagesNew role a 'challenging assignment,' former IRS commissioner saysBiden's nomination comes at a critical time for the agency. After another difficult filing season, the IRS is still wrestling with a backlog. As of Nov. 4, there were 4.2 million unprocessed individual returns received this year, according to the agency.  "I look at the numbers and see millions of taxpayers that are still waiting for their returns to be processed," wrote…

Jonathan Alcorn | ReutersIf you manage to beat the odds stacked against hitting the Powerball jackpot, don't forget you'll have a silent partner in the win: the taxman.The jackpot for Saturday night's drawing is now the largest lottery prize ever at an estimated $1.6 billion — pretax — if you were to opt to take your windfall as an annuity spread over three decades. The upfront cash option — which most jackpot winners choose — for this drawing is $782.4 million, also pretax. With the chance of a single ticket hitting the…

If you're eager to save more for retirement in 2023, there's good news from the IRS: higher limits for your annual 401(k) plan and individual retirement account contributions.The employee contribution limit for 401(k) plans is increasing to $22,500 in 2023, up from $20,500, and catch-up deposits for savers age 50 and older will jump to $7,500, up from $6,500. The new amounts also apply to 403(b), most 457 and Thrift Savings Plans.The agency has also increased contribution limits for IRAs, allowing investors to save $6,500…

If you're planning to sell investments or rebalance your taxable portfolio, you may be less likely to trigger a tax bill in 2023, experts say.This week, the IRS released dozens of inflation adjustments for 2023, including higher income tax brackets, increased standard deductions, bigger estate tax exclusions and more. The agency also bumped up income thresholds for the 0%, 15% and 20% long-term capital gains brackets for 2023, levied on profitable assets held for more than one year.More from Personal Finance:IRS bumps up…

The Internal Revenue Service released tax thresholds for 2023 after inflation adjustments. Photo: Ting Shen for The Wall Street Journal…

Senate Finance Committee Chairman Ron Wyden, D-Ore., questions IRS Commissioner Charles Rettig at a Senate Finance Committee hearing.Tom Williams | Pool | ReutersSenate Finance Committee Chairman Ron Wyden, D-Ore., has outlined five priorities for the nearly $80 billion in IRS funding enacted in August through the Inflation Reduction Act. Wyden shared expectations for the 10-year investment — including customer service, technology, audits for the wealthy, offshore tax evasion and criminal investigations — in a letter to…

If you're racing to meet the Oct. 17 tax extension deadline, make sure you don't skip key forms as you're rushing to the finish line, experts say.It's critical to file a complete and accurate return to avoid processing delays, according to the IRS, including details from all the necessary forms.Further, you may prevent stalled refunds and future IRS notices by filing an error-free return online with direct deposit.More from Personal Finance:As demand soars for Series I bonds, TreasuryDirect gets a makeoverThe job market…