By Rob Wile -
NBC News
The Internal Revenue Service (IRS) alerted taxpayers about a series of changes that will affect the tax return in 2023 and whose most significant consequence may be that
the refund, if you are entitled to it, will be less than it received in 2022.
That's because no federal aid payments were issued this year, and many taxpayers received their stimulus checks along with the refunds they got on their 2021 returns.
Witsarut Sakorn / EyeEm / Getty Images/EyeEm
The average return thus went from $2,863 in 2021 (for the 2020 tax filing year) to $3,253 in 2022 (for the 2021 tax filing year).
Another important change: Taxpayers who take the standard deduction, instead of itemizing their deductions, will not be able to use their charitable contributions to reduce their taxable income.
The CPA Practice Advisor tax preparation website notes that, in 2021,
the IRS allowed you to deduct $300 per person, or up to $600 per family
, in charitable contributions, even if you didn't itemize other deductions.
That subsidy will no longer be available.
[Many Americans can file their taxes for free. This is what you need to know]
Finally, the IRS reminded taxpayers that electronic transactions that earned them $600 or more must be reported, including those made on apps like Venmo.
Before 2022, it was necessary to fill out tax forms only if they exceeded $20,000.
The IRS also said you shouldn't report money received through payment apps from family or friends that were gifts or reimbursements for personal expenses.
Thanks to inflation, you may pay less in federal taxes next year
Oct 19, 202202:08
The agency also warned taxpayers not to wait for their refunds by a certain date because delays may occur, adding that it is taking additional steps to ensure security against identity theft and tax fraud.
That extra diligence by the IRS means it could take longer to review your tax return.
For context, the IRS said that, as of Nov. 11, it was still processing 3.7 million returns, including some for tax year 2021 and prior-year returns filed late.
[If you haven't filed your tax return yet, "you'd better ask for an extension," experts advise]
Of those, he added,
1.7 million required error correction or other special treatment
, and 2 million were paper returns waiting to be reviewed and processed.
