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IRS will start accepting 2022 tax returns on January 23, 2023
Internal Revenue Service announced on Monday that January 23, 2023, marks the beginning of the nation’s 2023 tax season when the agency will begin accepting and processing 2022 tax returns. IRS expects that more than 168 million individual tax returns will be filed, with most of those coming before filing deadline. The filing deadline April 15th this year falls on Saturday and the Emancipation Day holiday falls on Monday April 17th which gives two extra days to taxpayers to file their tax returns. Tuesday, April 18th is tax filing deadline to submit 2022 tax returns or an extension to file. The most electronic filers can expect to receive refund within 21 days from the day they file. Those taxpayers claiming the earned income tax credit or additional child tax credit will most likely not receive refund before mid-February.
Please remember when filing an extension, you are getting extra time to file but not extra time to pay.
Getting Ready for 2023 Tax Season
Here are some key items taxpayers should consider before filling:
• There are no more above-the-line charitable deductions. During COVID, taxpayers could take up to $600 charitable tax deduction on their tax return. In 2022, this above-the-line deduction is not longer available.
• Some of the tax credits are returning to 2019 levels. Changes include amounts for the Child Tax Credit (CTC), Earned Income Tax Credit (EITC) and Child and Dependent Care Credit. Those who received $3,600 per dependent in 2021 for the CTC will, if eligible, get $2,000 for the 2022 tax year. For the EITC, eligible taxpayers with no children who received roughly $1,500 in 2021 will now get $500 in 2022. The Child and Dependent Care Credit is back to a maximum of $2,100 in 2022 instead of $8,000 in 20221.
• Refunds may be smaller than what may be expected by many taxpayers. There are no more Economic Impact Payments for 2022 (stimulus payments).
January 31st Tax Deadline
If you had a business with employees in 2022, this is the day you must submit your W-2 forms to the Social Security Administration. You must furnish copies to your employees by this deadline as well. January 31st is also the due date to file fourth quarter 2022 payroll tax reports and also the deadline to submit 1099 forms issued to independent contractors. In general, a business would need to issue a 1099s to all vendors who provided the business with the service, and the business paid them $600 or more with check or cash unless they are incorporated.
Internal Revenue Service Announces Delay for $600 Reporting Threshold
The Internal Revenue Service recently announced a delay in reporting threshold for third party settlement organizations set to take effect for the upcoming tax season. As a result of this delay, third party settlement organizations will not be required to report tax year 2022 on a Form 1099-K to the IRS or the payee for the lower, $600 threshold amount enacted as part of the American Rescue Plan of 2021. The calendar year 2022 will be a transition period for implementation of the lowered threshold reporting for third party settlement organizations including Venmo, PayPal and CashApp that would have generated Form 1099-Ks for taxpayers.
If you run a business and you must use one of those third party settlement organizations, do not send money through personal Venom, PayPal or CashApp account; instead make sure you set up an account for your business. For more details click on the link below.
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For free consultation click on the link to schedule a one-on-one meeting with me over zoom or face to face. Schedule by clicking on a link below.
E-mail: dragana@dcmtax.com
Phone:318-751-5455
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Pickleball
I have been playing tennis all my life, however a few months back I picked up pickleball as my second sport and I cannot get enough of it. Even though this sport has been around for a while now (my research says since 1965), the sport did not pick up till mid-2020. Pickleball is a combination of tennis, ping pong and badminton. The sport grew nearly 40 percent between 2019 and 2021 making it America’s fastest growing sport. People of all ages have been playing pickleball regardless of if they played tennis, ping pong or badminton. If you all have not tried it yet, I strongly encourage you to get out there and try it. This sport is very fun. Shreveport-Bossier has a large community of people who get together and play at different locations throughout the week. Hope to see some of you out on the courts.