REUTERS/Amanda Andrade-Rhoades Amanda Andrade-Rhoades/Reuters Capitol is reflected in a window on Capitol Hill in Washington, U.S., April 20, 2023. Keep an eye on Congress for potential increases in two tax breaks: Lawmakers are still duking it out over the specifics of a bipartisan tax package that contains two provisions that could save money for some filers claiming the child tax credit and for small business owners. Information you’ll need to include on it will come from Form 1095-A that should have been issued to you. The same applies if you think you qualify for premium tax credits but didn’t receive them, according to the IRS.Ħ. Fill out this form if you qualify for premium tax credits for your health insurance: If you received advanced premium tax credits to help pay for health insurance you bought on the public exchange, he noted, you must fill out Form 8962. If the form does include some personal transactions, include all the information from your 1099-K on your return, but exclude those personal transactions and include a note alerting the IRS that the amount you subtracted is not business income, O’Saben advised.ĥ. If you did get a 1099-K, make sure all the transactions reported on it reflect true business transactions and not personal items like your friends paying you for their share of dinner. However, some states already require the forms be issued when transactions exceed that threshold, O’Saben said. The IRS has once again delayed implementation of the rule requiring third-party payment providers from having to provide 1099-Ks for business transactions that in total exceed $600 a year. Related article IRS set to launch its free tax filing pilot program. Have a small business or side gig? Check if you got a 1099-K from a payment app: If you got paid through third-party payment apps like Venmo for side gigs or a small business, check your account online to see if the company issued you a 1099-K.Ī sign outside the Internal Revenue Service building in 2021 in Washington, DC. it may be a simple data entry error,” O’Saben said.Ĥ. “Tax laws are not dramatically different this year than last year. If nothing major changed for you, but you find you have a very big difference in your tax liability or refund when you fill out your return, check your math. Assess what big changes, if any, occurred in your life in 2023: If you got married or divorced, had a baby, became widowed, sold a home or other big investment, started receiving Social Security, moved to a new state, or underwent any other major life transition last year, that may change your tax liability (or refund) from what it was on your 2022 return. But that doesn’t mean a document doesn’t exist,” O’Saben said.ģ. Ditto if you collected unemployment last year or had any other one-off payments that are potentially taxable. You need to go back to all those sources online to see what 2023 tax forms they have created for you and filed with the IRS. That’s especially the case if, like many people, you’ve told all your financial record keepers (eg, employers, banks, brokerages, insurers, etc.) not to send you paper documents. Pull out your return from last year: Your 2022 tax return will give you a good starting point for figuring out what documents you need to have handy to fill out this year’s return, said Tom O’Saben, director of tax content and government relations at the National Association of Tax Professionals. Here is the list of places where tax relief is available.Ģ. If you live or do business in a federally declared disaster area, the IRS likely has extended the deadline for you to file and pay. Tax filers in Maine and Massachusetts, however, have until April 17 to file and pay, due to those states’ holiday observance of Patriots’ Day and Emancipation Day. Related article IRS will start accepting 2023 tax returns on January 29
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