YOUR 2022 TAX RETURNS ACT NOW
January 8, 2023 - Douglas Myser
Your 2022 tax returns act now. It is not too late at all to get ready for your 2022 tax returns. In fact if you are an employee, your boss will be mailing your W-2 by the end of January, and then the countdown to filing your return by April 15th will begin. You can avoid getting stressed out over it, by organizing now, and alleviating that stress ahead of time, by taking some of the work and getting it out of the way. That way, when it comes crunch time you already have some of the work done. Taxpayers are required to report the income they earned, including any part time work, gig work, cash under the table income, or side jobs selling products or services they performed. The American Rescue Plan of 2021 lowered the amount for reporting for third party networks that process payments for those doing business. Prior to 2022, Form 1099-K was issued for third party payment network transactions exceeding $20,000. Now a single transaction over $600 can force a reporting company to report a transaction. Your 2022 tax returns act now.
The lower information reporting threshold and the summary of income on Form 1099-K enables taxpayers to more easily track the amounts received. Money received through third party payment applications from friends and relatives as personal gifts or reimbursements for personal expenses is not taxable. Those who receive a 1099-K reflecting income they didn't earn should call the issuer. The IRS can correct it. Credit amounts also change each year like the Child Tax Credit, Earned Income Credit, and Dependent Care Credit. Taxpayers can use the Interactive Tax Assistant at the IRS website to determine that. If you need further help, contact a good Tax Resolution firm for assistance and any questions you may have.