1/30/2024 0 Comments Federal refund statusAnyone filing an extension, the IRS says, "should estimate and pay any owed taxes by your regular deadline to help avoid possible penalties." Reciting the litany of problems that can stack up without an extension, Khalfani-Cox notes that failure-to-file and failure-to-pay penalties can accrue each month, with interest added on to any unpaid tax amounts. The IRS delayed the new reporting requirements for payment apps by only a year. But taxpayers have always been obligated to report their full income on their tax returns, whether they've received a 1099-K form or not. It's understandable for people to feel relief about the respite, she said. "We've got a ton of people who are freelancers and 1099 workers, contractors, consultants, people who do side hustles, etc." "You know, we're in a gig economy," Khalfani-Cox said. Then the IRS postponed the plan, which had sparked confusion. Millions of Americans could be excused for freaking out a bit when the government announced it would start making Venmo and other peer-to-peer payment apps report income for goods and services worth $600 or more annually - a sharp drop from the previous threshold of $20,000. "But Congress didn't extend this deduction in 2022." Do I need to worry about Venmo, PayPal and Cash App? "It was a $300 deduction for people who don't itemize and a $600 deduction for married couples," Khalfani-Cox said. A special temporary tax break changed that for returns covering 2021 earnings. In general, taxpayers can only deduct donations to charity from their taxes if they itemize deductions, rather than take a standard deduction. Shots - Health News Poverty and uninsured rates drop, thanks to pandemic-era policies A special charitable deduction break also lapsed Pandemic legislation provided $7,200 in combined tax credits for two kids under 6 in the last tax season, but that same family is now looking at $4,000 in credits. How did the child tax credit change?įor this tax season, many families with two children under 6 years old can't count on an extra $3,200 worth of tax credits that helped them last year. "But now that's gone" for people dealing with 2022 taxes, Khalfani-Cox said. "And they got $1,400 per person on their 2021 taxes," plumping their tax refund or lowering their bill. "But a whole bunch of taxpayers actually received what's called a recovery rebate credit," Khalfani-Cox said. and now it's goneīecause of the government response to the COVID-19 pandemic, many Americans got a $1,400 stimulus check in 2021, the third of such payments. "And it turns out that 7 million of them were paper returns." The stimulus giveth. "The IRS told us all in late 2022 that they have something like 9 million unprocessed tax returns," Khalfani-Cox said. The other option is less fab: People who submit returns on paper are more likely to join the agency's large backlog. The hotline number is 1-80.The IRS says people who file electronically should expect to get their refund within around 21 days if they choose direct deposit and their return has no issues. Not everyone has internet access or a mobile phone, so the IRS also offers a toll-free number where people can call to check on their refund status. It will then tell you where in the process your filing stands, such as whether it's been processed and when your refund will be sent. Like the website, the app (available for both Apple and Android phones) asks for your Social Security number, filing status and refund amount. The app is called IRS2Go, and like the "Where's My Refund?" website, it will provide info on your refund status within 24 hours after you file. The IRS also has an app for mobile phones where people can track their refund status. When the refund is approved, which means the IRS is preparing to send your the payment to your bank or mail a check to you.When the IRS receives your return, which means the agency is processing your tax forms.
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