What To Know About New U.S. Tax Laws for 2022
U.S. tax laws change every year, and keeping up with the latest rules and regulations can be challenging. Here are some of the most important tax law changes you should know about for 2022. Here’s what to know about new U.S. tax laws.
Reporting Rules Changed for Form 1099-K
If you received payments from third-party platforms such as Venmo, PayPal, Facebook Marketplace, Etsy, Poshmark, or others, you may receive a Form 1099-K by January 31, 2023. This form reports the total payments you received from these platforms during the tax year.
Before 2022, Form 1099-K was only issued if you had over 200 transactions and more than $20,000 in payments from these platforms. However, the American Rescue Plan Act of 2021 lowered the reporting threshold to $600, regardless of the number of transactions.
This means that more people will receive Form 1099-K and will have to report their income from these platforms on their tax returns. All income, including from part-time work, side jobs, or sales of goods, is taxable unless it is excluded by law.
What To Know About New U.S. Tax Laws: Some Tax Credits Return to 2019 Levels
In 2021, many taxpayers benefited from expanded tax credits due to the stimulus legislation passed in response to the COVID-19 pandemic. However, some of these expansions have expired or will expire after 2022. This means affected taxpayers will likely receive a smaller refund or owe more taxes than the previous year.
Some of the tax credits that have changed include the Child Tax Credit (CTC), Earned Income Tax Credit (EITC), and Child and Dependent Care Credit.
How Can You Prepare for the New Tax Laws and Chicago IRS Tax Lawyers?
If you need help with your taxes, you can contact North Suburban Legal Services LLC. They are a team of experienced Chicago IRS tax lawyers who can help you with any tax issues.
