Key tax changes for your 2023 taxes

• Form 1099-K (Payment Card and Third Party Network Transactions) is used by credit card companies and third party processors like PayPal and Venmo to report transactions processed for retailers and other third parties.
• On December 23, 2022 the IRS announced a delay in reporting thresholds for third-party settlement organizations for tax year 2022 (taxes filed in 2023). As a result of this delay, well-known third party settlement organizations (TPSOs) were not required to report tax year 2022 transactions on a Form 1099-K to the IRS or the payee for the lower, more than $600 threshold amount enacted as part of the American Rescue Plan of 2021.
• On November 21, 2023 IRS announced another delay in reporting thresholds for third-party settlement organizations (TPSOs) set to take effect for tax year 2023( the taxes you file in 2024). As a result of this delay the TPSOs will not be required to report tax year 2023 transactions on a Form 1099-K to the IRS or the payee for the lower, over $600 threshold. Per the IRS, this means that for tax year 2023 the existing 1099-K reporting threshold of the aggregate of more than $20,000 in payments from over 200 transactions will remain in effect. 
• If you're self-employed and accept credit, debit, or prepaid cards, you may receive Form 1099-K for transactions processed by a third party. This includes creators, influencers, rideshare drivers, or side-giggers.
• If you're an online seller selling on platforms like Ebay, AirBnB, Etsy, and VRBO you may also receive Form
  1099-K.

What is beneficial ownership information?

• Beneficial ownership information refers to identifying information about the individuals who directly or indirectly own or control a company.

Why do companies have to report beneficial ownership information to the U.S. Department of the Treasury?

• In 2021, Congress passed the Corporate Transparency Act on a bipartisan basis. This law creates a new beneficial ownership information reporting requirement as part of the U.S. government’s efforts to make it harder for bad actors to hide or benefit from their ill-gotten gains through shell companies or other opaque ownership structures.

Should my company report beneficial ownership information now?

FinCEN launched the BOI E-Filing website for reporting beneficial ownership information (https://www.fincen.gov/boi) on January 1, 2024.

• A reporting company created or registered to do business before January 1, 2024, will have until January 1, 2025, to file its initial BOI report.
• A reporting company created or registered in 2024 will have 90 calendar days to file after receiving actual or public notice that its creation or registration is effective.
• A reporting company created or registered on or after January 1, 2025, will have 30 calendar days to file after receiving actual or public notice that its creation or registration is effective.

• Self-Employed may receive Form 1099-K from third party providers like PayPal or Venmo for payments processed.
• The American Rescue Plan of 2021 changed third party payment processors reporting requirements to payments processed exceeding $600, which is down considerably from the original more than 200 transactions per year and exceeding an aggregate amount of $20,000 reporting requirement.
• On December 23, 2022 the IRS announced a delay in the lower reporting thresholds for third-party settlement organizations for tax year 2022 (taxes filed in 2023).
• On November 21, 2023 IRS announced another delay in reporting thresholds for third-party settlement organizations (TPSOs) set to take effect for tax year 2023( the taxes you file in 2024). As a result of this delay the TPSOs will not be required to report tax year 2023 transactions on a Form 1099-K to the IRS or the payee for the lower, over $600 threshold. Per the IRS, this means that for tax year 2023 the existing 1099-K reporting threshold of the aggregate of more than $20,000 in payments from over 200 transactions will remain in effect. 
• You may receive a Form 1099-NEC or Form 1099-K reporting income, but don’t forget to deduct self-employed expenses like business mileage at 65.5 cents per mile for 2023.

• Reverted back to pre-American Rescue Plan law
• No Advance Child Tax Credit
• Child Tax Credit up to $2,000 for each dependent child under 17
• Credit phased out for income over $200,000 single and $400,000 married filing jointly
• Refundable up to $1,600 - that means you can get up to $1,600 without owing $1,600 in taxes.

• Reverted back to pre-American Rescue Plan law
• Age expansion expires
• Qualifier with no kids must be 25 and under 65
• EITC is up to $7,430 for a family with
  3 children

• Reverted back to pre-American Rescue Plan tax law
• Up to $1,050 credit for one child
• Up to $2,100 credit for two or
  more children

• Up to $7,500 Tax Credit for new
  electric vehicles
• Up to $4,000 Tax Credit for used electric vehicles
• Effective August 17, 2022, final assembly of new cars must be in
  North America
• Further changes begin with January 1, 2023 purchases (2023 taxes)

• Non-business Energy Property Credit for energy efficient property and the Residential Energy Efficient Property Credit for solar equipment increased

• The American Rescue plan provided relief to students with government and federal student loans by allowing students with forgiven loan debt to exclude the discharged debt from their taxable income for tax years 2021 through 2025
• The pause on Federal student loan repayment, interest, and collections was extended until September 30, 2023. Payments will be due starting
  October 2023.
• Parents and students paying student loans may now have student loan interest to deduct once student loan payments resume.

• The Infrastructure Bill, signed into law in March 2022, changed reporting requirements of digital assets like crypto. Beginning tax year 2023 (taxes filed in 2024), brokers will be required to report crypto transactions to the IRS
• If you sold or traded crypto (like Bitcoin), the IRS still requires you to report your crypto sales, regardless if you receive a form from the broker.