WEST SPRINGFIELD, Mass. (WWLP) – The New Year brings along the beginning of tax season. So what can you do to prepare? Your taxes are going to look more like 2020 with many of last year’s tax benefits expiring.
22News spoke with tax expert Ray Maagero at Liberty Tax in West Springfield. A good example is the child tax credit, without those advanced payments your refund may go up or down depending on your situation. Child dependent credits will go down this year as well and earned income tax credit for single filers with no kids will go back to normal.
You may also get a new form called a 1099-K. That’s for online transactions like Venmo and Paypal that may or may not be taxable.
Maagero told 22News, “If you have a business, you can be processing transactions there. Those will be taxable. If you’re sending money to family and friends, those may also be reported on there so you’re going to get a 1099-K as well as the IRS. So they’re going to be looking for that on your tax return.”
Taxes are due Tuesday, April 18th, 2023, but Maagero recommends getting them done as soon as all your documents come in. That way you know what to expect when you file and can make a plan.