CLARKSBURG, W.Va. (WBOY) – Your refund for the 2022 tax year may be less than previous years, the Internal Revenue Service said Wednesday.
This is due to several recently passed changes to the tax code.
The IRS said taxpayers who take the standard deduction instead of listing their taxes can no longer deduct their charitable contributions. Also, the American Rescue Plan Act of 2021 lowered the reporting threshold for third-party networks that process payments for business people.
A 1099-K form used by third-party networks can now be triggered by a single transaction that exceeds $600. The threshold to trigger the form used to be $20,000 in total transactions.
For those claiming Earned Income Tax Credit (EITC) or Additional Child Tax Credit (ACTC), the IRS said it can’t issue those returns until mid-February because the law requires it to withhold the entire refund, to give yourself more time to uncover fraud.
Additionally, some large refunds were granted for tax years 2020 and 2021 because taxpayers who did not receive their economic impact stimulus payments claimed them when filing their taxes.
For those who use payment processors and get a 1099-K for the income they didn’t earn, such as B. Personal gifts or reimbursements for personal expenses — which aren’t taxable — tells the IRS it can’t correct the form. Instead, taxpayers must call the issuer.
There are some new or enhanced tax credits that may be available to taxpayers, including the Premium Tax Credit and the Clean Vehicle Credit.
The IRS acknowledged that in 2022, as of Nov. 11, it had received 3.7 million unprocessed individual returns and 900,000 unprocessed 1040-X amended tax returns.
“The IRS is processing these amended statements in the order in which they were received and the current timeframe may be more than 20 weeks,” the IRS said in the press release. “Taxpayers should keep checking, where is my amended tax return? for the latest available processing status.”
https://www.wane.com/news/national-world/irs-says-your-tax-refund-may-be-smaller-this-year/ What will the tax refund look like in 2023?