If eligible, you can claim up to $50,000 in qualifying expenditures for each qualifying renovation completed, up to a maximum credit of $7,500 for each claim you are eligible to make. The standard deduction for 2023 also increased by about 7%, to $13,850 for individuals and $27,700 for married couples filing jointly. In 2023, the IRS set Jan. 23 as the official start of tax season, marking the date the agency began accepting 2022 tax returns. If you’re self-employed and accept credit, debit, or prepaid cards, or have payments processed by third parties like Venmo and PayPal, you may receive Form 1099-K for payments processed by a third party. This includes creators, influencers, rideshare drivers, or side-giggers.

• If eligible, you can claim up to $50,000 in qualifying expenditures for each qualifying renovation completed, up to a maximum credit of $7,500 for each claim you are eligible to make.
• If you’re one of the 2 million Canadians that still file a paper return, you should have already received your 2023 tax package in the mail.
• A total of 7.65% of your gross wages goes to federal taxes, 6.2% to Social Security and 1.45% to Medicare.
• The credit is available for renovation expenses incurred in 2023 and beyond.
• Tax season officially started Jan. 29th, when the IRS began accepting tax returns and now there are about five weeks left until Tax Day, April 15.
• In January 2022, the IRS will send Letter 6419 with the total amount of advance Child Tax Credit payments taxpayers received in 2021.

Deciding between hiring someone to do your taxes and taking the DIY route can be tricky. If you have a limited number of income sources and you plan to take the standard deduction, doing your own taxes will save you money and will be fairly straightforward. You can also check if you qualify for one of the IRS’ free filing programs.

File

With that in mind and tax season officially here, it’s good to know which bracket you fall into if you don’t already. The good news is tax brackets are more favorable this year than last due to inflation adjustments. To learn more about what that means for you and your tax bill, see Kiplinger’s guide to the federal tax brackets and income tax rates for 2023 and 2024. Tax deductions, tax credit amounts, and some tax laws have changed since you filed your last federal income tax return.

To claim either credit, taxpayers will need to provide the vehicle’s VIN and file Form 8936, Qualified Plug-in Electric Drive Motor Vehicle Credit, with their tax return. All income, including from part-time work, side jobs or the sale of goods is still taxable. Taxpayers must report all income on their tax return unless it’s excluded by law, whether they receive a Form 1099-K, a Form 1099-NEC, Form 1099-MISC or any other information tax season return. It is important for taxpayers to understand why they received a Form 1099-K, then use the form and their other records to help figure and report their correct income on their tax return. It is also important for taxpayers to know what to do if they received a Form 1099-K but shouldn’t have. Taxpayers shouldn’t receive a Form 1099-K for personal payments, including money received as a gift and for repayment of shared expenses.

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If the information is incorrect on the 1099-K, taxpayers should contact the payer immediately. The payer’s name appears in the upper left corner on the form. The taxpayer should keep a copy of all correspondence with the payer with their records. FICA stands for Federal Insurance Contributions Act; it’s the federal payroll tax. A total of 7.65% of your gross wages goes to federal taxes, 6.2% to Social Security and 1.45% to Medicare. If eligible, you can claim up to $50,000 in qualifying expenditures for each qualifying renovation completed, up to a maximum credit of $7,500 for each claim you’re eligible to make.

• IRS Free File will also be available on IRS.gov starting Jan. 12 in advance of the filing season opening.
• If you’re self-employed, you should already be paying taxes on your total income, even if you don’t receive a 1099 from all of your earnings.
• To be eligible, taxpayers must have income limited to wages reported on Form W-2, Social Security or unemployment, as well as interest income of $1,500 or less.
• The new threshold requires reporting of transactions in excess of $600 per year; changed from the previous threshold of an excess of $20,000 and an excess of 200 transactions per year.