5 Tax Season Tips for 2023

• Remember to file your taxes, even if you don’t believe you owe any money.
• Save $15 on TurboTax’s e-filing service when you create a Payactiv account.
• This year, you might see some changes if you have children, are self-employed, or received a peer-to-peer payment of more than $600.

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.

1. File a Tax Return This Season Even If You Don’t Owe Any Taxes

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. 

2. Tax Changes for Families, those Self-Employed, and Charity Donors

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:

• Child Tax Credits are up to $1,600 smaller.
• Non-refundable Child and Dependent Care Credits are up to $5,900 less.
• The Earned Income Tax Credit (EITC) has reduced access this year if you’re single with no dependents. Income limits for this credit decreased by almost $5,000.
• No more self-employment credits linked to COVID-19. 
• No tax deductions for charitable donations unless you’re itemizing deductions. The 2021 tax season allowed you to deduct $300 – $600 in charitable donations without itemizing.

3. Watch for Extra Tax Documents From Peer-to-Peer Payment Services

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.

4. Save When Filing Your Taxes

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.

5. Get Your Return Quickly and Spend It Wisely

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. 

Tax Season Tips: How to File Accurately, Maximize Your Refund, and Save Money

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.

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