{"id":2387,"date":"2022-12-12T14:48:07","date_gmt":"2022-12-12T14:48:07","guid":{"rendered":"https:\/\/acmmconsulting.com\/?p=2387"},"modified":"2025-06-02T16:31:57","modified_gmt":"2025-06-02T16:31:57","slug":"get-ready-for-taxes-whats-new-and-what-to-consider-when-filing-in-2023","status":"publish","type":"post","link":"https:\/\/acmmconsulting.com\/en\/get-ready-for-taxes-whats-new-and-what-to-consider-when-filing-in-2023\/","title":{"rendered":"Get Ready for taxes: What’s new and what to consider when filing in 2023"},"content":{"rendered":"

The Internal Revenue Service encouraged taxpayers to take important actions this month to help them file their 2022 federal tax returns.<\/p>\n

This is the second in a series of reminders to help taxpayers get ready for the upcoming tax filing season. A\u00a0“Get Ready” page<\/a>\u00a0outlines steps taxpayers can take now to make tax filing easier in 2023.<\/p>\n

Here’s what’s new and some key items for taxpayers to consider before they file next year.<\/p>\n

Reporting rules changed for Form 1099-K.\u00a0<\/strong>Taxpayers should receive\u00a0Form 1099-K, Payment Card and Third Party Network Transactions<\/a>, by January 31, 2023, if they received third party payments in tax year 2022 for goods and services that exceeded $600.<\/p>\n

There’s no change to the taxability of income. All income, including from part-time work, side jobs or the sale of goods is still taxable. Taxpayers must report all income on their tax return unless it’s excluded by law, whether they receive a Form 1099-K, a\u00a0Form 1099-NEC, Nonemployee Compensation<\/a>, or any other information return.<\/p>\n

Prior to 2022, Form 1099-K was issued for third party networks transactions only if the total number of transactions exceeded 200 for the year and the aggregate amount of these transactions exceeded $20,000. The American Rescue Plan Act of 2021\u00a0lowered the reporting threshold<\/a>\u00a0for third party networks that process payments for those doing business.<\/p>\n

Now a single transaction exceeding $600 can require the third party platform to issue a 1099-K. Money received through third party payment networks from friends and relatives as personal gifts or reimbursements for personal expenses is not taxable.<\/p>\n

The IRS cautions people in this category who may be receiving a Form 1099 for the first time \u2013 especially “early filers” who typically file a tax return during the month of January or early February \u2013 to be careful and make sure they have all of their key income documents before submitting a tax return. A little extra caution could save people additional time and effort related to filing an amended tax return. And if they have untaxed income on a Form 1099 that isn’t reflected on the tax return they initially file, that could mean they need to submit a tax payment with an amended tax return.<\/p>\n

If the information is incorrect on the 1099-K, taxpayers should contact the payer immediately, whose name appears in the upper left corner on the form. The IRS cannot correct it.<\/p>\n

Some tax credits return to 2019 levels.\u00a0<\/strong>This means that affected taxpayers will likely receive a significantly smaller refund compared with the previous tax year. Changes include amounts for the\u00a0Child Tax Credit (CTC), Earned Income Tax Credit (EITC)\u00a0and Child and Dependent Care Credit.<\/p>\n