The Internal Revenue Service (IRS) reminds taxpayers that to avoid mishaps and errors, gather the necessary information in advance and visit IRS.gov for up-to-date resources and tools to help you with your 2022 tax return.
The agency has made available to taxpayers the tax time guidedesigned to help people understand how tax changes affect them annually and how to file an accurate tax return.
To file a return, taxpayers must wait until they receive all the corresponding tax documents, or risk making a mistake that could cause delays.
They should also review your documents carefully. If any information is inaccurate or missing, taxpayers should contact the payer immediately to have it corrected or to ensure that the issuer has your current postal or email address.
Taxpayers are encouraged to create an IRS online account to securely access information about your federal tax accountincluding payments, tax records, and more.
Organized tax records make it easy to prepare a complete and accurate tax return and can help taxpayers find overlooked deductions or credits.
The tax agency reminds that it is possible that taxpayers with a Personal Taxpayer Identification Number or ITIN must be renewed if it is expired. If they don’t renew, the IRS may still accept your return, but may delay processing or any credits owed.
Changes to Credits and Deductions for Tax Year 2022
Unlike 2020 and 2021, there were no new stimulus payments for 2022, so taxpayers should not expect to receive an additional payment on their 2023 tax refund.
However, the IRS notes that taxpayers may still qualify for the temporarily expanded eligibility of the Premium Tax Credit, which helps eligible individuals and families cover the premiums for their health insurance purchased through the Health Insurance Marketplace. To get this credit, taxpayers must meet certain requirements and file a tax return using Form 8962.
Eligibility rules have also changed to claim a Clean Vehicle Credit under the Inflation Reduction Act of 2022.
The IRS reminds that some tax credits return to 2019 levelswhich means that taxpayers will likely receive a significantly smaller refund compared to the previous tax year.
The changes include amounts for the Earned Income Tax Credit (EITC), the Child Tax Credit (CTC) and the Child and Dependent Care Credit which will return to pre-Covid levels.
For the EITC, eligible taxpayers without children who received approximately $1,500 in 2021 will now receive $560 for tax year 2022.
Those who received $3,600 per dependent in 2021 for CTC, if eligible, will get $2,000 per dependent for tax year 2022.
The Child and Dependent Care Credit returns to a maximum of $2,100 in 2022 instead of $8,000 in 2021.
Finally, taxpayers who do not itemize and take the standard deduction cannot deduct their charitable contributions this year.
For more details on the Tax Time Guide, click here.
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