Back in January, the Internal Revenue Service (IRS) announced through their official website that the 2023 tax season has begun and reminded American taxpayers to file electronically with direct deposit in order to speed refunds and avoid delays.
The IRS has stressed that the majority of the 2022 tax returns are expected to be filed before a deadline set on April 18. On some occasions this period may be extended, as Alabama, California and Georgia storm victims now have until May 15 to file tax returns.
“Following months of hard work, we successfully opened our processing systems today to start this year’s tax season,” said IRS Acting Commissioner Doug O’Donnell.
“Getting to this point is a monumental effort not only for the IRS but also for the nation’s tax community.
“The hard-working employees of the IRS look forward to serving taxpayers this filing season, and I personally want to thank them, and all of the tax and payroll community for their dedication to making tax time smoother for the nation.”
Does Financial Aid count as Income?
Many taxpayers may wonder whether the financial aid that they receive for their degree programs could be considered by the US government as taxable income.
For degree seeking students, the financial assistance could be taxable in the even it exceeds their qualified tuition and related expenses in their degree.
The IRS defines the aforementioned expenses as “tuition and fees required for enrollment or attendance at the educational institution or for books, supplies and equipment required for courses of instruction at the institution and required of all students in your course of instruction.”
Meanwhile, it has to be noted that this is not the case for non-degree students, whose full amount of any grant, scholarship or fellowship is subject to federal income tax.