Personal taxes

Drakula & Co. | Moment | Getty ImagesHow soon to expect a tax refund after filing your returnTypically, you will receive a refund within 21 days if you've filed an accurate, electronic return with direct deposit for the payment, according to the IRS. Paper filings and errors may extend the timeline. You can check the agency's refund portal for status updates. The timeline changes if you're claiming the earned income tax credit — a tax break for low- to moderate-income workers — or the additional child tax credit.…

It's official: The tax season kicks off for individual filers on Jan. 23, the IRS announced Thursday.For most taxpayers, you must file your federal return and pay your balance by April 18 this year to avoid racking up penalties and interest."This filing season is the first to benefit the IRS and our nation's tax system from multi-year funding in the Inflation Reduction Act," said acting IRS Commissioner Doug O'Donnell. "With these new additional resources, taxpayers and tax professionals will see improvements in many…

mediaphotos | E+ | Getty ImagesEnlist tax prep helpOne of the first things to consider: Will you be filing your own taxes this year or tapping an expert to file a return on your behalf?If you're planning to hire a tax preparer, January is a good time to find someone, said certified financial planner Anna Sergunina, president and CEO of MainStreet Financial Planning in Los Gatos, California."Don't wait till March," she warned. "They most likely will not be taking on new clients that late in the tax season."For those eyeing…

Scott Olson | Getty ImagesYou may face long odds of hitting the Mega Millions jackpot — now worth $1.35 billion — but the taxman is always guaranteed a slice when there's a winner.The jackpot jumped again after no ticket matched all six numbers drawn Tuesday night to land the grand prize. If won in the next drawing — set for Friday night — it would mark the second-largest Mega Millions jackpot ever and the fourth-largest lottery prize in history.With the odds stacked against a single ticket winning the motherlode — 1 in…

This could be a very good year for one lucky winner of the fourth-largest jackpot in Mega Millions history.And yet, kicking off 2023 with $785 million could have a downside."The curse of the lottery losers is very real," said Andrew Stoltmann, a Chicago-based lawyer who has represented several recent lottery winners.One of the very first decisions a winner must make — whether to accept the jackpot as a lump sum or as an annuity — often ends up being their downfall, Stoltmann said.More from Personal Finance:4 key things to…

Anadolu Agency | Anadolu Agency | Getty ImagesOf course, the advertised amount is only what you'd get if you were to choose to take your winnings as an annuity spread over three decades. The lump-sum cash option — which most winners choose — for this jackpot is $403.8 million, as of mid day Tuesday.Regardless of how you'd decide to receive your windfall, taxes would take a bite out of it.$96.9 million in taxes would be shaved off cash optionAssuming you're like most winners and were to choose the cash option, a mandatory…

Designer491 | Istock | Getty ImagesIf you're eager to boost your retirement savings, there's good news for 2023: higher 401(k) contribution limits. And now is the time to adjust your deferrals, financial experts say.You can funnel $22,500 into your 401(k), 403(b) and other such plans for 2023, up from the $20,500 limit in 2022. Employees 50 and older can contribute an extra $7,500, up from $6,500 in 2022.In 2021, roughly 14% of investors maxed out employee deferrals, according to 2022 estimates from Vanguard, based on…

Members of the Salvation Army play music during the lighting of the world's largest Red Kettle in the Times Square neighborhood of New York, U.S., on Tuesday, Dec. 1, 2020.Jeenah Moon | Bloomberg | Getty ImagesThis holiday season, it may be possible to lower your taxes while supporting your favorite charity, experts say.  Despite the shaky economy, most Americans plan to donate similar amounts this year as they did last year, a recent Edward Jones study found.While tax breaks typically aren't the main reason for giving,…

'Take lemons and make lemonade' with tax-loss harvestingWith the S&P 500 Index down nearly 20% for 2022 as of midday Dec. 19, it may be a good time for tax-loss harvesting, which allows you to offset brokerage account profits with losses, Roberge said.After reducing your 2022 investment gains, you can use additional losses to lower regular income by $3,000 and carry the remaining losses forward to future tax years.  Karen Van Voorhis, a CFP and director of financial planning at Daniel J. Galli & Associates in…

AsiaVision | E+ | Getty ImagesAs the tax season approaches, many Americans are bracing for a new reporting change for third-party payment networks like Venmo or PayPal.  Starting in 2022, you'll receive Form 1099-K, which reports income to the IRS, for business payments over $600. But experts say it's possible you'll receive 1099-Ks for personal transfers by mistake."As tax preparers, we are more or less expecting the worst," said Albert Campo, a certified public accountant and president of AJC Accounting Services in…