Big Changes To This Year’s Tax Season
Plus, learn tips for getting your money back fast.
This week marks the start of tax season – a time to leave behind difficult times and get into gear with an improved IRS customer service and a smoother filing process in 2023!
Taxpayers are now receiving an extra three days to file their taxes – good news for those who often struggle under the April 15th deadline! To help with queries and provide even better service, The IRS have made a major hiring push. Over 5,000 new telephone operators were added as well as more in-person staff funded by last summer’s Inflation Reduction Act; all of which means some big changes this tax season that you should be aware of.
Get ready for a major shakeup when it comes to filing taxes this year! That’s right – the pandemic-era Child Tax Credit, which was extra generous in 2021 with $3K for older kids and $3.6K for younger (plus an age limit raise from 16 to 17!), has ended its stay of generosity, so you may want to brace yourselves if tax time isn’t as pleasant this go around than last year. But don’t worry: there are some tips out there on how you can get your return back faster once all is said and done!
Looking ahead, it’s worth noting a few changes from last year when it comes to tax credits. For example, if you’re caring for dependents or have low/moderate income levels: the credit you can claim is now nonrefundable and capped at $2,100 (down from an impressive $8K previously). Plus unfortunately the ability of those who don’t itemize taxes in making charitable deductions has been nixed – no more extra cash on top of your refund!
If you’re an investor, check out this tax insight! The losses from last year’s rough markets could come in handy – they can help offset any capital gains while also reducing up to $3k of your ordinary income. And just when you thought it couldn’t get better: one scheduled change for 2022 has already been delayed – so there are more savings on the horizon. Bottom line? It may be time to break out those ledgers and crunch some digits!
If you use third-party payment processing platforms like Venmo, PayPal and Cash App for any business transactions in 2022 or 2023, don’t worry about receiving a Form 1099_K – it isn’t required yet. However the IRS have pushed this requirement back to early 2024, so make sure your records are up to date! Any income received through these services should be reported come tax time even if there’s no official record of them.
If you’re one of the many tech employees who were affected by last year’s job cuts, it might come as a surprise that government assistance like severance pay and unemployment benefits are taxable. File your taxes early to avoid any fraudulent claims from criminals looking for a refund in your name – plus, the IRS will only reach out via mail if they need something from you – not through texts or phone calls!
Don’t get stuck in tax return limbo! With IRS Free File, you can significantly speed up your refund – this service provides guided help and best of all it’s free for those with incomes under $73k. If paper filing is the way to go for you though — good luck navigating that backlogged system 😉
Don’t mix up filing your taxes and paying what you owe. File first even if you can’t pay it all by April 18th to avoid penalties! Taxpayers who need more time have until October 16th for an extension- but don’t forget about that money due on April 18th!