In the United States, the 2022 tax year could have a smaller tax refund from the Internal Revenue Service (IRS). At least that is what this administration has assured. This lower tax refund may come due to changes in the tax code. The government has made these changes recently, so it will affect the year 2022 above all.
In short, the IRS announced that all taxpayers with a standard deduction will not be able to deduct charitable contributions. This is not the case for itemized tax returns. To all this we have to add that the American Rescue Plan Act in 2021 also reduced part of the threshold for third parties with payments for those with any business.
In this regard, the 1099-K form can only be triggered during a single transaction in excess of $600. This type of form is the one used by third party networks. Prior to this change, the threshold to be able to activate this form was $20,000 in aggregate transactions. As can be seen, the change is very noticeable.
Other changes to next year’s tax return
For all those United States residents claiming the Earned Income Tax Credit (EITC) or the Additional Child Tax Credit (ACTC), the IRS announced that it will not be able to issue tax refunds until February. This is because the law requires withholding on any refunds. The ultimate intent of this withholding is to have a little more time to prevent and detect fraud.
It should also be noted that in 2020 and 2021 there were much larger tax refunds due to the stimulus payments being added to the other checks. Therefore, we will not see this for attorney year 2022.
Last Nov. 11, there were still more than 3.7 million unprocessed individual returns, as the IRS recently counted. In addition, there were also 900,000 unreviewed 1040-X forms. These forms are the ones used for amended tax returns. The IRS said in a statement that “The IRS is processing these amended returns in the order received and the current timeline may be more than 20 weeks. Taxpayers should continue to check Where’s My Amended Return for the most up-to-date processing status available.”
Having all this information all we can do is wait, as the IRS always ends up sending fair taxes to those who deserve it. If you have to receive the taxes for next year, it is possible that your refund will be less, but it is still something that cannot be known for sure. Remember to always file your tax return on time to avoid problems with the IRS.