What will the tax refund look like in 2023?

CLARKSBURG, W.Va. (WBOY) – Your refund for the 2022 tax year may be smaller than in previous years, the Internal Revenue Service said Wednesday.

This is due to several recently adopted changes to the Tax Code.

The IRS said taxpayers who take the standard deduction instead of itemizing their taxes will no longer be able to deduct their charitable contributions. In addition, the American Rescue Plan Act of 2021 lowered the reporting threshold for third-party networks that process payments for businesses.

Form 1099-K used by third-party networks can now be triggered by a single transaction exceeding $600. Previously, the threshold to trigger the form was $20,000 in aggregate transactions.

For those claiming the Earned Income Tax Credit (EITC) or Additional Child Tax Credit (ACTC), the IRS said it cannot issue those returns until mid-February because the law requires it to withhold all refunds in an attempt give yourself more time to detect fraud.

In addition, several large refunds for tax years 2020 and 2021 were awarded because taxpayers who did not receive economic impact stimulus payments claimed them when they filed their taxes.

For those who use payment processors and receive a 1099-K for income they didn’t earn, such as personal gifts or reimbursements for personal expenses that aren’t taxable, the IRS says it can’t correct the form. Instead, taxpayers will have to call the issuer.

There are several new or expanded tax credits that may be available to taxpayers, including Premium tax credit and Loan for a clean car.

The IRS acknowledged that as of Nov. 11, 2022, it had received 3.7 million unprocessed individual returns, as well as 900,000 unprocessed Forms 1040-X for amended tax returns.

“The IRS processes these amended returns on a first-come, first-served basis and the current turnaround time can be more than 20 weeks,” the IRS said in a statement. “Taxmen should continue with the audits Where is my amended return? for the most current processing state available.”