global Tax Filing Taxes in 2023: What You Should Know December 13, 2022 2023 is fast approaching! Wondering what to expect this coming tax season? We’ve got you covered. Attention taxpayers…are you ready for another filing season? There are some important tax items you should be aware of as we head into 2023. Let’s dive in. 5 important things to watch Reporting rules for 1099-K could change- Check out our blog, IRS Delays $600 Threshold for 1099-K Reporting--the IRS delayed this change late December 2022. We will keep you posted if this changes. If you received third party payments in 2022 for goods and services that exceeded $600, you were set to receive a Form 1099-K by January 31, 2023. Under previous rules, the IRS required each Payment Settlement Entity (PSE) to send your business a Form 1099-K by January 31st if you received over $20,000 in gross payment volume and over 200 separate payments in a calendar year. Given this change under the American Rescue Plan Act of 2021, many more people will be receiving 1099-Ks. Although the change has been delayed, it's always a good idea to be sure to review your gig activities, make sure you have accurate payment records, separate gross receipts received through a PSE that are income from personal payments, and make sure you document all deductions.Refunds may be smaller- Given that some tax credits are returning to 2019 levels, some taxpayers may be receiving refunds much smaller than the previous tax year. This includes:Child Tax Credit- Those eligible for this credit will get $2,000 for the 2022 tax year (as opposed to $3,600 in 2021)Child Dependent Care Credit- This credit returns to a maximum of $2,100 in 2022 (down from $8,000 in 2021)Earned Income Tax Credit (EITC)- Childless taxpayers who are eligible for the EITC will receive a $560 credit in 2022 (down from $1,502 in 2021)No above-the-line charitable deductions- Taxpayers were able to take up to a $600 charitable deduction during the pandemic, but in 2022 those who take a standard deduction cannot take an above the line deduction for charitable donations.Premium tax credits could open up to more people- Premium tax credits are government subsidies aimed at reducing premium costs for lower-to middle-income individuals who buy health plans on exchanges. Taxpayers may qualify for temporary expanded eligibility for the credit for tax year 2022. The American Rescue Plan Act of 2021 eliminated the previous rule that taxpayers with household incomes above 400% of the federal poverty line cannot qualify for the credit. Eligibility rules for clean vehicle tax credits have changed- Owners of EVs placed in service after December 31, 2022 are now eligible for a tax credit of up to $7,500 ($4,000 or 30% of the vehicle price, whichever is less, for used EVs) for 10 years—until December 2032. Additionally, the Act gives EV owners the option (starting in 2024) to take the EV tax credit as a discount at the time you buy the EV. Keep in mind that the Inflation Reduction Act imposes income limits on who is eligible for the credit-Single filers with MAGI over $150,000 do not qualifyMarried filers with MAGI over $300,000 do not qualifyHead of household filers with MAGI over $225,000 will not qualify The tax filing deadline is April 18, 2023. Don’t forget to download our 2022 Year End Tax Planning Guides for Businesses and Individuals. Questions? Contact us.