2022 saw major updates to many key tax regulations. In this newsletter we see some of those changes and how you use them today to start planning for your future.
One key change that was set to take effect in 2023 was the reporting requirement for third party payment processors – Paypal or Stripe to name a couple – The new rule is any transactions which in the aggregate will exceed $600 must now be reported on forms 1099. This change is expected to impact millions of taxpayers who previously had not had to report sales online. The IRS has delayed implementation of this rule to allow processors time to update their systems to cope with the massive reporting requirements. Check out this article on Forbes for more information.
IRS also announced that tax payers can expect smaller refunds this year. This is in large part due to the elimination of COVID era credits and refunds which have not been extended for the 2022 filing season.
People with dependents will see a large decrease in the amount of credits they are eligible for as the child tax credit has been reduced back down to pre-2020 levels.
Read our Newsletter for more information on these and other topics you won’t want to miss this tax season.
As always, please Contact Us if you have any questions about how you can save on taxes.
Certified Public Accountant