IRS Kicks Off 2023 Tax Season with a Call to File Electronically and Opt for Direct Deposit

The Internal Revenue Service (IRS) has officially announced the start of the 2023 tax season and is encouraging taxpayers to file their returns electronically and choose direct deposit to speed up their refunds and avoid delays. The majority of the 2022 tax returns are expected to be filed before the April 18^th deadline, with the exception of Alabama, California, and Georgia storm victims who have been given an extension until May 15^th to file their returns, as reported by MARCA on February 7, 2023.

IRS Acting Commissioner Doug O’Donnell expressed his gratitude for the hard work of IRS employees and the tax community in making this year’s tax season a success. He praised their dedication to making tax time smoother for the nation, as reported by the official website of the IRS on January 12, 2023.

Taxpayers who receive financial aid for their degree programs may be wondering if the assistance could be considered taxable income by the US government. The IRS considers the financial aid taxable if it exceeds the student’s qualified tuition and related expenses, defined as tuition, fees, books, supplies, and equipment required for enrollment or attendance at the educational institution. However, non-degree students should note that the full amount of any grant, scholarship, or fellowship is subject to federal income tax, according to MARCA.

The IRS is dedicated to making this year’s tax season as smooth and efficient as possible and encourages taxpayers to file electronically and choose direct deposit for quicker refunds.