Are You A Taxpayer? IRS Instructed Some Reminders Before Tax Season Begins

Since 2022 is now over, the time to start preparing your 2022 tax returns has run out. A number of updates and changes from the IRS should be noted by those getting their paperwork ready to file.

Those who were qualified to receive the Child Tax Credit in 2021 and received $3,600 per dependent will, if eligible, receive $2,000 in 2022. The EITC will now only provide eligible taxpayers without children with $500 in 2022 as opposed to the roughly $1,500 they received in 2021. In 2022, instead of being $8,000 as in 2021, the Child and Dependent Care Credit will once again have a $2,100 cap.

According to an article published by GO Banking on January 25, 2023, Form 1099-K must be received by January 31 by taxpayers who received more than $600 via third-party payment apps like PayPal and Venmo during 2022. Taxpayers are required to report all income, including that from side jobs, side businesses, and the sale of goods. All income is taxable.

This is a significant change from last year, when 1099-Ks were only issued for third party networks transactions if the total number of transactions for the year exceeded 200 and the total value of those transactions exceeded $20,000

Since the start of the pandemic, taxpayers have been able to deduct up to $600 in charitable contributions from their taxes. However, this deduction is ending this year. Standard deduction recipients are not permitted to deduct charitable contributions above the line.

Taxpayers may still be eligible for a temporary expansion of their eligibility for the premium tax credit for 2022. More taxpayers might be eligible for a clean vehicle credit under the Inflation Reduction Act of 2022.