HARLINGEN, Texas(ValleyCentral)— It’s about that time of the year again: tax season.

Some new things this year include an increased standard deduction, adjusted tax brackets, and key changes to common tax credits and deductions. 

The IRS adjusts the thresholds that apply to the income tax brackets each year to account for inflation. With Inflation reaching a four-decade high, the changes will be more noticeable this filing season. 

“There’s been some new changes in the law this year that will affect your refund,” said Federico Garza, owner of STMS Tax Services. “Some of it is going to be your credits, and some of your tax credits are gonna go back to the 2019 level, so you won’t be getting as much of a refund as you’d be getting in 2021 or 2020.

“So because of this is past COVID. “Now, so instead of like a child tax credit, instead of getting $3,600, you’re only going to get $2,000.”

The 2023 tax season starts at the end of January, and you should receive a W-2 form from your employer by then. Since many employers use a digital payroll system for direct deposits, your W-2 could come electronically. 

Students

If you’re like most students, chances are you’ve needed some financial help to help pay for college. Each type of financial award you receive is treated differently on your federal tax return.   

First, you’ll want to include your earnings from a work-study award. You should exclude any Pell Grants from taxable income unless they were used for unapproved purposes, any government student loans, and evaluate any state financial awards you’ve received. 

The tax treatment of your FAFSA awards is the same even if you withdraw from the college at a later date.    

“A lot of FAFSA information is derived from whether you work on your own, you know how old you are, what your parents’ income is,” Garza said. “So make sure you have all information and especially for people who are applying for FAFSA, that they should try to get their tax return done as quickly as possible and encourage the parents to come in as quickly as possible to do a tax return because in FAFSA, whoever comes first, gets the money first.”

If you plan to hire an expert to help with your taxes, make plans to do that now.

The IRS is expected to start accepting tax returns on Jan. 23. The filing deadline is April 18.