After three years of stimulus payments and pandemic tax breaks, nearly all those extra benefits and one-year provisions have expired. As a result, most organizations and individuals will likely see tax returns that feel closer to pre-pandemic levels.
Earned income tax credit has returned to its pre-pandemic size, along with an expiration of charitable donations for people who do not itemize their deductions. A lot of these special benefits were temporary and, with the national emergency and public health emergency declarations coming to an end, we are returning to normal.
There are plenty of other impactful updates, nuanced rules and new layers to filing your organization’s taxes that you need to be mindful of before you file your federal tax return by April 18, or October 16 if you filed for an extension.
Below are a few things to pay attention to when filing your organization’s taxes this year:
- Want your refund faster? File electronically with direct deposit. The IRS has made it possible for people filing Form 1040-X to select ‘direct deposit’ for any resulting refund.
- You may be eligible for the Premium Tax Credit. For tax year 2022, taxpayers may still qualify for temporarily expanded eligibility for the Premium Tax Credit, or PTC. The PTC is for certain people who enroll, or whose family member enrolls, in a qualified health plan.
- Driving a clean vehicle? You may get a tax break. If you bought a new, qualified plug-in electric vehicle (EV) before December 31, 2022, you may be eligible for a clean vehicle tax credit. However, it’s important to review the changes under the Inflation Reduction Act of 2022 to ensure you still qualify.
- Refunds that include the Earned Income Tax Credit (EITC) and the Additional Child Tax Credit (ACTC) cannot be issued before mid-February. While the IRS began accepting returns on January 23, 2023, they cannot issue EITC – or ACTC-related refunds before mid-February due to the 2015 PATH Act. If you filed early this year and have not seen your refund yet, you can use the “Where’s My Refund?” tool to check on your refund status.
For additional tax updates or tax-related questions, we encourage you to schedule a one-on-one call with a tax expert from SST Accountants & Consultants. Our team takes the time to ensure a complete understanding of industry updates and we’ll guide you through the tax process, leaving no stone unturned.