Here are 3 key things to know before filing your taxes

While this year's tax play kicked off with a flood of returns, aboriginal filings person slowed, according to Jaeger.

He believes the change successful refunds is the crushed wherefore aboriginal returns person tapered off. "What we're seeing is refunds are going down and much radical person a equilibrium due," helium said. 

The mean refund was $3,079 arsenic of Feb. 24, compared to $3,473 1 twelvemonth anterior — astir an 11% decline, according to the IRS. Of course, the mean whitethorn alteration with millions of returns inactive to come.

Typically, you person a national refund erstwhile you overpay the year's taxes oregon withhold much than what you owe. The IRS warned successful January that refunds this twelvemonth whitethorn beryllium "somewhat lower" than past twelvemonth owed to expiring pandemic alleviation that delivered taxation breaks successful 2021. 

In 2021, galore families got a boost from the enhanced child taxation credit, worthy up to $3,600 per child, and child and babelike attraction taxation credit of up to $4,000 per dependent. But those taxation breaks, among others, person reverted to erstwhile levels.

"Now you're seeing this drop-off due to the fact that you person radical who are either little definite due to the fact that they possibly getting a smaller refund," Jaeger said. "Or they really beryllium the IRS wealth ... cipher truly wants to wage that equilibrium owed until April 18."

One of the champion ways to avoid refund delays is by filing a implicit and close return, according to the IRS. Typically, the bureau issues refunds wrong 21 days for error-free, electronically filed returns with nonstop deposit for the payment.

However, experts accidental it's captious to person all your taxation forms acceptable earlier sending your return. Employers and fiscal institutions nonstop taxation forms each year, with a transcript going to taxpayers and the IRS.

"If thing is furnished connected a taxation statement, the IRS knows it's coming," said Nicole DeRosa, elder taxation manager astatine accounting steadfast Wiss, noting the missing accusation whitethorn trigger a taxation announcement from the agency, on with imaginable penalties and interest.

You tin marque a checklist of the forms you whitethorn request by reviewing past year's taxation return, experts suggest. If you're inactive not acceptable by April 18, you tin file for an extension, Jaeger said. But you inactive indispensable wage your equilibrium owed by the taxation deadline to debar racking up penalties and interest.

Whether you're a gig system worker, online seller oregon transportation wealth betwixt household and friends, payments from apps similar Venmo oregon PayPal person go a confusing taxation topic.  

Although concern income has ever been taxable, individuals and the IRS shouldn't person Form 1099-K unless 2022 payments crossed a threshold of much than 200 transactions worthy an aggregate supra $20,000.

If you person the signifier by mistake, the IRS says to interaction the issuer immediately. But taxation professionals accidental to include the form's details connected your return to debar a mismatch astatine the agency. "If you did get one, you privation to study it," Jaeger said.

Originally, the threshold for 1099-K reporting was acceptable to alteration for 2022, dropping to $600 for adjacent a azygous transaction. This means galore much filers would person received Form 1099-K this play — but the IRS delayed the reporting change until 2023.

However, adjacent if you don't person the signifier for 2022 concern payments, you inactive request to see that income connected your taxation return, DeRosa said.