Getting prepared for the upcoming tax season
COLUMBUS, Ga. (WTVM) - Now that giving season has wrapped up, it’s time to see if you will get a gift from Uncle Sam.
“Well, what’s happened, the covid changes, which were good to save people money, are gone now,” says Stephen Brown. This means your refund might be smaller than the last two years, especially if you have young children.
“The bigger child tax credit and the bigger daycare credit is no longer, so we are back to the old rules, which are not as generous,” says Brown.
Several companies over the last year gave employee raises sending taxpayers into different brackets, which tax preparer Elizabeth Demunn says comes with the changes this year.
“The tax brackets has changed for everyone, so taxpayers need to make sure they are aware of what tax bracket they fall into, may be positive for some or negative for others,” says Demunn. But the new laws don’t stop there if you give to charity this year.
“You have to itemize in order to take charitable contributions now, last year you have a 300 to 600 dollar deduction. Those are gone,” says Brown. If you got those Paypal or Venmo payments in 2022 as an individual or small business owner, be on the lookout for a new form.
“So if you get a 1099-K, you need to file on it, and you might not get one. It’s causing a lot of confusion,” says Brown. “For small businesses to make sure you have your 1099-k and make sure that you have all your documents in place,” says Demunn.
Before the big tax season rush, Brown says it’s time for people to get prepared now. “The rules have gotten much more complicated in the last 10 or 20 years. They need to make sure they have everything,” says Brown.
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