2023 Income Tax: get organized for the new year!

Taxpayers should start the due arrangements for paying their 2023 income tax in compliance with the legal deadlines and best practices

New year, new accountability with the Federal Revenue Service. The 2023 Income Tax season is right around the corner and those who get organized to comply with their tax duties have better chances of doing everything right.

And since good organization can make all the difference in maintaining good standing, it is worth taking the time to make the necessary arrangements.

The Revenue Service has yet to disclose the specific rules for filing the 2023 individual income tax return, which corresponds to the calendar year 2022, but one can get a head start based on the instructions given for previous years.

Benefits of planning ahead

The period for filing the income tax return usually starts in March and ends at the end of April. However, taxpayers who start planning for it earlier have more time to gather all the necessary paperwork and supporting documents. This way, they can work out which type of tax return is more suitable for their situation and have enough time to seek expert advice, if they so wish.

This practice comes with a few benefits, such as:

Get organized for your 2023 Income Tax

At this point, one can already start gathering and keeping income-related paperwork (e.g.: income statements and receipts from other sources, etc.), assets and rights (e.g.: purchase and sale of goods), payments made (mainly deductible expenses), investments (monthly assessments and paid bills), donations, debts incurred, and so forth, as such information must be provided in several fields of the tax return.

The number of items to be reported can be large if a taxpayer has several dependents or if their tax situation has a certain degree of complexity.

Record keeping

It is crucial to retain these documents and keep records for at least five years after the income tax return has been filed to the Revenue Service, since the agency may require their submission within this timeframe.

2023 Income Tax made simple

DPC has a department focused on individual taxpayers that supports them in the planning, filling out and submission of their annual income tax returns. Our team provides tailor-made, custom services, while keeping information private, ensuring best practices and making life easier for those who need to comply with this tax obligation. Contact us: dpc@dpc.com.br