Tax Time, Already?

Year after year, you hear us mention that you shouldn't delay filing your taxes. It's mainly to combat the ever-increasing fraud we experience across the globe. This year, however, we are singing a different tune. Sort of. Before you get too excited…no, fraud cases have not gone down. Fraud, including tax return fraud, is still rampant, but this year, you might consider waiting at least a few days to start prepping your returns.

First, I want to mention that the IRS is not accepting tax returns until January 29th. Still, many people start getting ahead of the game by entering information in their tax software or gathering documentation early, hoping they can file as soon as the IRS says "go." Before you hit "file" on the 29th, let's chat about a few changes that might impact your return.

•   A proposal to increase the Child Tax Credit is currently in the works and will be reviewed by the House after their recess, starting next week. The proposal states, "The refundable portion of the child tax credit would increase to $1,800 for tax year 2023, $1,900 for 2024 and $2,000 for 2025 — and a new calculation would expand access." Moreover, the new calculation would apply per child, allowing more lower-income families to qualify for a higher credit.

•   Other notable changes to this year's filing include a benefit for inflation. You heard that right – it's the only time we can be somewhat thankful for inflation. "That's because the IRS adjusted many of its provisions in 2023 for inflation, pushing the standard deduction to a more generous level and raising its tax brackets by 7.1% — a historically large adjustment." As a result, higher refunds could be in store – some up to about 10%.

•   While this isn't technically a reason to wait on filing, I am particularly excited to hear that the IRS has made internal improvements to their "Where's My Refund" portal, and hopes that these changes would get refunds into the hands of taxpayers much quicker than previous years – projections were as low as 21 days. I thought the expedited timeframe was important to include in this post; after all, 'tax time' and 'excitement' usually don't go together in my household, anyway.

We've reached the end of this post, but if you will indulge me for one moment…

This year, we are doing something a little different. Every month, we like to offer a VISA Rewards Credit Card promotion for extra Rewards Points. It's usually for something fun like "Earn 5X the points on travel or for buying chocolate". This year, we decided to reward our cardholders for doing the one thing we ALL have to do in our lifetime, and no one really enjoys it – you guessed it, filing taxes. If you are a VISA Rewards cardholder and you have to pay your tax bill or pay to file your taxes, we're going to reward you for it. Bookmark this page because all the details will be live on March 1st! I'd say, "Happy filing," but who am I kidding? Have a nice day!

Do you have any tax tips to share? I want to hear from you. Leave a comment below or email me.

Krista Kyte is a personal finance blogger and personal banker with over 21 years of experience in the financial industry. Krista is passionate about helping our members understand their financial situations. She writes tips that help consumers reach and maintain financial security and start living the life they've always wanted.