The Tax Blotter – Dec. 22, 2022

The 2023 tax filing season is about to kick off.  Individual taxpayers should start assembling all the information needed for filing their 2022 returns.

Tax Day is coming. Before you know it, the deadline for fling 2022 tax returns will be here. But at least you have three days longer than usual to meet your obligations. The due date for filing 2022 individual returns is Tuesday, April 18, because the normal due date of April 15 falls on a Saturday and the next business day, Monday, April 17, is Emancipation Day in D.C.  Note that many other April 15 deadlines are postponed to April 18, including payment of the first quarterly installment of estimated taxes for 2023.  

Tax twists and turns. Be aware of several significant changes on 2022 returns. Notably, significant enhancements to the Child Tax Credit (CTC) and dependent care credits have expired, returning these credits to pre-2020 levels. In addition, charitable donors who don’t itemize can no longer deduct monetary gifts of up to $300 ($600 for joint filers). Plus, eligibility rules for claiming electric vehicle (EV) credits have changed. See your professional tax advisor for details, 

Forms on the way? Are you paid for a self-employed gig by third party networks like PayPal and Venmo? You might receive 1099-K forms this tax filing season for the first time. Previously, these forms were sent only if a business had 200 or more transactions during the year totaling more than $20,000. However, under new reporting rules, forms must be issued for 2022 if business transactions amounted to $600 or more. The business income was already taxable under prior law.