You made it! 2021 has ended and it’s time to start looking ahead to the 2022 tax season. Here are the latest updates.
There are lots of tax deadlines that have already lapsed as 2021 drew to a close, and there are lots more just around the corner. Social Security, Medicare, and withheld income tax are all due on January 18. And January 31 is the deadline to send out forms 1099-NEC.
Tax Day this year is still set for April 15, 2022, but that is still subject to change should any new developments in the coronavirus pandemic take place. If you are hoping to get an extension, Form 4868 needs to be filed before April 15, and your tax due date will be pushed back to October 15, 2022.
Kentucky taxpayers should also be aware of a recent deadline change in light of the tornadoes that struck certain areas in the state. Victims of the December 10 disasters will have until May 16, 2022, to file individual and business tax returns.
ACA Open Enrollment runs from November 1, 2021, to January 15, 2022, so you still have time to enroll or change your marketplace coverage for 2022. There are also new opportunities – like zero-premium plans – for individuals with extremely low-income levels. For more on the ACA changes for 2022, see our previous blog article.
There are also some changes to 1099-K reporting coming in 2022. If your business or solopreneur gig includes selling products or services on sites like Etsy, eBay, or even Uber, you’ll need to fill out the 1099-K.
Right now, online sellers only get these forms if they had 200 or more transactions with a combined $20,000 or more. Starting in the tax year 2022, sellers who have sales totaling $600 or more will be issued this tax form.
Inflation has been a hot topic this year, with rates rising 6.8% in 2021 – the highest jump since 1982. Before these spikes, the IRS had already determined the inflation adjustment rates for tax year 2021 in October 2020.
And in November 2021, they put out the adjustment rates for tax year 2022 (which will be used when calculating and filing your taxes at the beginning of 2023). The standard deductions will increase (depending on your filing status) by $400, $600, or $800. You can see the latest adjustment increases here.
Increased Electronic Filing
Pending IRS final regulations, the limits imposed for filing paper copies versus filing electronically will be changing. As of now, if you send 100 or more W-2s to the Social Security
Administration, you are required to e-file them. But starting in 2023, that limit is likely going to be lowered to just 10 copies, which means the only people or businesses who can send in paper W-2s will be those that have 9 or fewer to submit.
Update to E-filing for the 2022 Tax Season & Beyond
After 2020 and 2021, it’s time to start making things easier on ourselves, don’t you think? That’s why eFile360 should be your go-to tax e-filing service. We can help you with mail and e-filing, combined federal and state filing, corrections, TIN checking, e-delivery, and more.
Sign up for a free eFile360 account today and let eFile360 help streamline your tax form journey.