01/04/2023
Happy New Year! Who's ready for tax season?! 😅😅😅 Here's a little guidance on the upcoming season.
There are many changes coming and some credits are returning to pre-epidemic levels. Changing credits include the child tax credit, earned income credit, child and dependent care credit, and education credit.The following link will take you to the IRS' "Get Ready" page. https://www.irs.gov/individuals/steps-to-take-now-to-get-a-jump-on-next-years-taxes Check the site for steps to prepare for the season and for information on the tax law changes.
This year, the IRS will tentatively begin processing 2022 returns on Tuesday, January 17th. Keep in mind that many forms are not required to be mailed to taxpayers until January 31st so you may not receive all applicable forms until mid-February. However, if you have all of your tax forms before the season's opening date, you can have your return prepared and submitted ahead of time. The IRS will process it as soon as the season opens.
If you received unemployment compensation during 2022, you must also download your Form 1099-G by logging into your account. Filing a return with the incorrect amount(s) will cause a delay in processing your return.
This year, many companies such as PayPal and Venmo, were supposed to begin issuing 1099Ks for third party payments over $600 for the year. If you are self-employed, these payments are income and should be reported, in addition to other business income and expenses. If any of the payments are personal, you must contact the company to make any necessary corrections. The IRS has issued a delay to this requirement and will not require it until the following tax season. However, you may still receive a form during this transition period as the IRS only recently announced the delay.
If you are a business owner or a taxpayer that has had any changes affecting your tax situation, you do not need to wait until the end of the season to file your tax return. You can get ahead by preparing your return and finding out any balance due. This will allow you more time to save money for your balance. Your return can be post-dated or submitted later. You have until April 17th (or October 16th if you file an extension) to submit your return, but your balance, if any, is due by April 17th.
I highly recommend that you create an IRS and IN online account, if you don't already have one. I have included the links here. https://www.irs.gov/ https://mytax.indiana.gov/_/ For the IRS, click on "Sign in to Your Account" in the middle of the page, then click "Sign in to Your Online Account" at the top, then click on "ID.me Create an Account" in the middle of the screen. For IN, follow the applicable steps. If you have received a letter from the IN Department of Revenue in the last 90 days, click on "Sign Up" on the right side of the screen, then "Next," and then enter your information as required. If you have not received a letter within the last 90 days, click on "Request a Letter ID" under the Individuals heading below and to the left of the login box. The Department of Revenue will send you a letter within 10 days to the address on file. Once you receive the letter, proceed with the aforementioned steps.
Lastly, I would like to remind you of the IRS' mileage record requirement for business owners. If you are not already keeping a record, whether handwritten or electronic, you should start as soon as possible. MileIQ and QuickBooks are some trackers that you can use. MileIQ is about $60 a year and QuickBooks is as low as $15 per month. If you have no need for any other income and expense tracking, you can look for other mileage only trackers, such as MileIQ.
If you have any questions or would like to schedule an in-person appointment, please message me. My contact information is below. In-person by appointment only.
219.871.0518 Tel
219.210.1515 Tel
[email protected]
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