Personal taxes

If you're eager to file your 2022 tax return in January or early February, the IRS has a warning: You'll need to wait for "key documents" before filing in 2023.In a release last week, the IRS urged "early filers" to watch for Form 1099-K, which reports income for third-party payment networks such as Venmo or PayPal."A little extra caution" could save time and effort, the agency said, because if you don't report 1099-K income, you may owe money and need to file an amended return.More from Personal Finance:Tax 'refunds may…

Charday Penn | E+ | Getty ImagesIf you've accepted payments via apps such as Venmo or PayPal in 2022, you may receive Form 1099-K, which reports income from third-party networks, in early 2023. But there's still time to reduce your tax liability, according to financial experts. "There's no change to the taxability of income," the IRS noted in a release Tuesday about preparing for the upcoming tax season. "All income, including from part-time work, side jobs or the sale of goods is still taxable," the agency added.Before…

seksan Mongkhonkhamsao | Moment | Getty Images1. Boost your 401(k) contributionsIf you haven't maxed out your workplace 401(k), there may still be time to boost your contributions for 2022, said Guarino.The move may lower your adjusted gross income while padding your retirement savings, but "time is of the essence," he said. With only one or two pay periods left for 2022, you'll need to make contribution changes immediately. 2. Take your required minimum distributionsZhanna Hapanovich | Istock | Getty ImagesUnless it's…

Tom Werner | DigitalVision | Getty ImagesCertain tax credits have been reduced One possible reason for a smaller tax refund is the child tax credit and the child and dependent care tax credit have been reduced for 2022, explained certified financial planner Cecil Staton, president and wealth advisor at Arch Financial Planning in Athens, Georgia.While both tax credits received a temporary boost through the American Rescue Plan of 2021, the enhanced tax breaks were not extended to 2022. "The big picture is a lot of people…

Bill Oxford | E+ | Getty ImagesIf your tax refund is still in limbo, there's good news: Your balance may be accruing interest, and the rate increases to 7% from 6% on Jan. 1, according to the IRS.As of Nov. 18, there were 3.4 million unprocessed individual returns received in 2022, including filings for previous tax years, the agency reported.related investing newsThese assets have yields not seen in years — here’s what to know about preferred stocksAdjusted quarterly and tied to the federal short-term rate, the 7%…

After a volatile year for the stock and bond markets, it may be time to rebalance your portfolio by shifting assets back to match your original goals, according to experts.  As of Nov. 28, the S&P 500 Index was down roughly 17% year-to-date, and the U.S. bond market has dropped by around 13%, leaving many investors with significantly different allocations than one year ago.related investing newsThese assets have yields not seen in years — here’s what to know about preferred stocksTypically, you choose an initial…

Charles Taylor | Getty Images1. If your income is higher in 2022, defer your bonus into 2023If you've had a strong year and expect lower earnings in 2023, you may try to defer a holiday bonus until the new year, experts say."It's always exciting to reap the rewards of hard work by getting a year-end bonus," said Lisa Greene-Lewis, a CPA and tax expert with TurboTax. "But sometimes that may bump you up into another tax bracket."However, by receiving the money in January, you may reduce 2022 income without waiting too long…

Ariel Skelley | Getty ImagesYou must 'itemize' to claim the charitable deductionWhen filing your return, you reduce your taxable income by subtracting the greater of either the standard deduction or your total itemized deductions — which may include charitable donations. Signed in 2017, former President Donald Trump's signature tax overhaul nearly doubled the standard deduction, making filers less likely to itemize.For 2022, the standard deduction is $12,950 for single filers or $25,900 for married couples filing…

The Internal Revenue Service building in Washington.SAUL LOEB/AFP via Getty ImagesNew role a 'challenging assignment,' former IRS commissioner saysBiden's nomination comes at a critical time for the agency. After another difficult filing season, the IRS is still wrestling with a backlog. As of Nov. 4, there were 4.2 million unprocessed individual returns received this year, according to the agency.  "I look at the numbers and see millions of taxpayers that are still waiting for their returns to be processed," wrote…

Jonathan Alcorn | ReutersIf you manage to beat the odds stacked against hitting the Powerball jackpot, don't forget you'll have a silent partner in the win: the taxman.The jackpot for Saturday night's drawing is now the largest lottery prize ever at an estimated $1.6 billion — pretax — if you were to opt to take your windfall as an annuity spread over three decades. The upfront cash option — which most jackpot winners choose — for this drawing is $782.4 million, also pretax. With the chance of a single ticket hitting the…