Taxpayers, business owners, and self-employed individuals looking for tax tips and tricks: last year was a big year for policy changes. With the deadline to file fast approaching on April 18th, we’ve got you covered with expert tips and resources to help you file with confidence this year.
Our first tax season tip is that it’s always a good idea to file your taxes, even if you think you don’t owe anything. By doing so, you can take advantage of available benefit programs and receive a tax refund. While you’re at it, consider filing for the 2020 and 2021 tax years if you haven’t already. You have up to three years to file and claim your refund. So don’t miss out!
Pro Tip: Create a Payactiv account and save $15 on TurboTax’s e-filing software and save time on filling.
If you expect a large return this season, our second tax season tip is to shift your expectations because your 2022 refund will likely be smaller. A tax credit is a tax incentive that reduces the tax a taxpayer owes to the government. The government usually provides tax credits to encourage certain behaviors or support certain activities such as energy-efficient home improvements, charitable donations, or childcare expenses.
For example, if you owe $5,000 in taxes and are eligible for a $1,000 tax credit, your tax liability would be reduced to $4,000. Tax credits are generally more valuable than tax deductions, which reduce taxable income rather than tax liability.
Here are some specific changes to credits and deductions that kicked in this year:
In 2022, the IRS was expected to push a rule requiring most peer-to-peer payment processors like Venmo, Paypal, and CashApp to issue unique tax forms to anyone who received $600 or more in 2022. The IRS pushed the rule to next year, but some payment processors might have already sent out these forms for 2022.
If you received $600 or more through a peer-to-peer service, you could get a 1099 tax form in the mail, even though the IRS does not consider these payments taxable income this year. Our third tax season tip is to consult a tax professional if you receive a 1099 tax form from a peer-to-peer payment service by mail.
The IRS Free File program is a great resource that lets you file your taxes online without spending any money, as long as your adjusted gross income (AGI) is $73,000 or less. In addition, the VITA program provides free, in-person services for those with an adjusted gross income of under $60,000.
If you don’t qualify for Free File with the IRS, you can still get personalized tax prep help for less. Our fourth tax season tip is to save $15 on TurboTax’s e-filing software when you create a Payactiv account.
The average tax refund was over three thousand dollars last year. Despite recent tax changes, you could still receive a significant return from Uncle Sam this year.
Our fourth tax season tip to save money and get your refund faster is to direct deposit1 your refund onto the Payactiv VisaⓇ Card*. When you are finished filing, add the account and routing numbers in your Payactiv app and get your refund up to four days early1. You can even set your refund aside for a custom goal in the Payactiv app2.
With tax season in full swing, staying informed about tax changes and updates is key to filing accurately and ensuring a maximum refund. We hope these tax season tips help you save and get your return in sooner.
Remember, file your taxes, even if you don’t owe any money, to help you take advantage of available benefit programs and receive a tax refund. If you’re eligible, remember to watch for extra tax documents from payment processors and use resources like the IRS Free File and VITA programs.
Additionally, finding the right tax software and linking your return to direct deposit can make the tax filing process easier and faster. Signing up for a direct deposit on the Payactiv Card can help you get your refund up to four days early1 and set it aside for a custom savings goal.
Lastly, consider utilizing resources like the IRS Free File program, the VITA program, and TurboTax with Payactiv to save money and make the process easier.
Good luck, and happy tax season!
1 Many (but not all) employers, government benefits providers, and other originators send direct deposits early with an effective date of 1-4 days later. Beginning with your second direct deposit of at least $5 from the same source, Central Bank of Kansas City (CBKC) will post the funds to your Payactiv Visa Card when we receive it, rather than on the effective date. This may result in your having access to the funds sooner. The date CBKC receives your direct deposit and the effective date are controlled by the originator.
* The Payactiv Visa Card is issued by Central Bank of Kansas City, Member FDIC, pursuant to a license from Visa U.S.A. Inc. Certain fees, terms, and conditions are associated with the approval, maintenance, and use of the Card. You should consult your Cardholder Agreement and the Fee Schedule at payactiv.com/card411. If you have questions regarding the Card or such fees, terms, and conditions, you can contact us toll free at 1 (877) 747-5862, 24 hours a day, 7 days a week.
2 Standard message and data rates from your wireless service provider may apply.
All content provided on Payactiv.com/financial-learning/ is for informational purposes only. Payactiv makes no representations as to the accuracy or completeness of any information on this site or found by following any link from this site. Payactiv will not be liable for any errors or omissions in this information nor for the availability of this information. Payactiv will not be liable for any losses, injuries, or damages from the display or use of this information.
A key facet of financial learning is understanding how tax preparation works...
* The Payactiv Visa Prepaid Card is issued by Central Bank of Kansas City, Member FDIC, pursuant to a license from Visa U.S.A. Inc. Certain fees, terms, and conditions are associated with the approval, maintenance, and use of the Card. You should consult your Cardholder Agreement and the Fee Schedule at payactiv.com/card411. If you have questions regarding the Card or such fees, terms, and conditions, you can contact us toll-free at 877-747-5862, 24 hours a day, 7 days a week.
** Central Bank of Kansas City is the issuer of the Payactiv Visa Prepaid Card only and does not administer, endorse, nor is liable for the Payctiv App.
1 Standard rates for data and messaging may apply from your wireless provider.
Google Play and the Google Play logo are trademarks of Google LLC.
Apple and the Apple logo are trademarks of Apple Inc., registered in the U.S. and other countries. App Store is a service mark of Apple Inc., registered in the U.S. and other countries.