Are Your Clients Ready for Tax Filing Season?

The IRS has released a reminder about some important changes that taxpayers should be aware of going into the tax filing season. If the client received third party payments in tax year 2022 for goods and services that exceeded $600, they should receive Form 1099-K, Payment Card and Third Party Network Transactions, by January 31, 2023. 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. During 2020 and 2021, taxpayers could take up to a $600 charitable donation tax deduction on their tax returns. That above-the-line deduction was eliminated for 2022. Many additional tax credit amounts returned to their pre-COVID levels. If they remain eligible, taxpayers who received $3,600 per dependent in 2021 for the child tax credit will receive $2,000 for 2022. Eligible taxpayers with no children who received about $1,500 under the earned income tax credit in 2021 will now be eligible for $500 in 2022. Finally, the Child and Dependent Care Credit returns to a maximum of $2,100 in 2022 (down from $8,000 in 2021). For more information one the rules governing , visit Tax Facts Online. : Q 760.