The deadline to file your 2022 taxes is April 18th, 2023. Here are some tips to get them done fast.
Catch wants to help make taxes as painless as possible. You can estimate, withhold, and pay your taxes quickly, from your phone, for free.
Don’t file your taxes too early
Wait to file until you’ve received all your 1099s.
1099s are the forms freelancers and other independent workers use for reporting income (compared to W-2s, the tax forms for employees).
If you file your taxes before you have received all of your 1099s, then the IRS may issue you a letter saying that you didn’t report all the money you made for the year. They may also tell you that you owe more in taxes.
Most forms should get to you by the end of January, but it’s possible some arrive later.
Why file early at all?
Besides avoiding the stress of a last-minute rush to meet the April deadline, getting your taxes done early generally means you get a refund faster.
Refunds may be smaller this year
Some tax breaks that were passed during the COVID-19 pandemic have since expired. The child tax credit is one example.
Regardless of your political inclination or agreement with the changes, you should plan ahead by setting the expectation that your refund may not be as big as it was for the 2021 tax year.
Platforms for payments and gig economy work will report your income to the IRS
If you have more than 200 transactions and $20,000 in revenue from earning income through an online platform (like Venmo, Etsy, DoorDash, or Airbnb), then the platforms must send that information to the IRS.
The IRS can then match the platform’s information to your individual tax return to make sure you’ve reported your income correctly.
You may have heard about the IRS lowering the threshold to $600, which would mean platforms reporting a lot more information.
However, the rule has been postponed one year, so the old thresholds remain in place through 2023.
Keep in mind, the new rule does NOT change the requirement to pay taxes on income. It only affects whether platforms give more information to the IRS, which serves as a way to double check whether you’ve reported income correctly.
Catch can help
Withholding on your income now can help avoid surprises on your quarterly tax payments later.
Because 1099 income does not get taxes withheld, it can be a surprise when you owe them each quarter.
Catch can relieve the shock and headache of taxes. You can estimate, automatically withhold each time you earn, and pay your taxes all online or within the Catch app.
Automate your withholding and payments, so you can get back to what matters most.