2023 tax refunds: What changes will affect the amount of the refund next year?

tNow is the time to start preparing for tax season as 2022 draws to a close. Even though your federal tax returns aren’t even due April 18, 2023It is likely that a number of tax changes will result in 2022 effect The amount of money you receive in taxes.

The end of 2021 saw the conclusion of several big tax benefits from recent years, including an expanded child tax credit, child and dependent care credit, and stimulus payments. As a result, this year’s refund may be slightly lower than usual.

In addition, you may discover that you owe taxes this year if you start a side business or a freelance job.

Some new rules have also been implemented. PayPal, CashAppAnd the Venmoamong other third-party payment platforms, will now report the annual income of the self-employed to tax authority.

If approved, student loan forgiveness is not subject to federal taxes; However, some states may impose tax liabilities on borrowers.

Finally, the IRS wants to know about any cryptocurrency-related activities you may have been involved in over the past year.

What changes will affect my reimbursement?

These are the most important tax changes to prepare for the upcoming tax season.

  • The standard discount for 2022 is higher
  • Income tax brackets were also higher in 2022
  • Child tax credit benefits are back to normal
  • Fewer mentors will qualify for the Child Care and Dependent Tax Credit
  • If you don’t have children, it’s hard to qualify for the Earned Income Tax Credit this year
  • If your student loans are forfeited, you may owe state taxes
  • You must report your crypto and NFT transactions
  • PayPal, Venmo, and other third-party apps will report your payments to the IRS
  • Increase retirement contribution limits
  • The temporary discount for charitable donations has ended

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