Tax season begins: What to know for filing this year

03:37

January 29, 2024

An Internal Revenue Service 2023 1040 tax form and instructions are shown on Friday, Jan. 26, 2024. For many people filing U.S. tax returns — especially those doing it for their first time — it can seem like a daunting task. (Peter Morgan/AP)

Tax season is officially here. What can consumers expect when they submit their filings to the IRS?

Though many dread filing taxes, CBS News business analyst and“Jill on Money” host Jill Schlesinger recommends getting it over with early and saving yourself the stress of waiting until the last minute.

On the IRS’s website, Schlesinger points out a section titled ‘Get Ready’ that lists all the documents and information taxpayers will need to file.

“If you don't have everything ready when you start the process, you will get stymied in the middle of it,” she says.

Jill Schlesinger’s tax tips

The average tax return is expected to increase this year. What does that mean for consumers?

“When you're getting a refund, you don't have use of your money throughout the year. You're basically lending money to Uncle Sam interest-free for a whole year.

“Last year you could have been earning 4 or 5% on that money. So if you get a big refund, no happy dance. Adjust your withholding. Keep on top of this. You need control of your money throughout the year.”

How can someone adjust their withholdings to ideally get a small or no tax return?

“You can basically use a withholding calculator on the IRS website, but you do it with your employer.

“If you are potentially working and you're self-employed, you might change the amount of money you're contributing for your quarterly estimates. But it's on you. Go to your employer. It's really easy to do.”

Tell us about the IRS’s new direct file program available in 12 states

“I find this very interesting because this would allow taxpayers to file their returns online. And according to the IRS, [it’s] mobile friendly, easy to use, secure, accessible and free. I love that word: free.

“There are 12 pilot states; you can check if you live in one of those 12 states. Maybe you try it out.

“It's basically a way to cut down on the amount of software and complaints and third parties and give people a way to file their taxes directly with the government, which many countries do already. We are well behind on that with our tax planning.”

Thomas Danielian produced and edited this interview for broadcast with Peter O'Dowd. Grace Griffin adapted it for the web.

This segment aired on January 29, 2024.

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