Avoiding Capital Gains Tax, Lower Tax Refunds This Year? Big IRS Tax Changes to Know Now

Tax Refunds Are Lower This Year. Here s Why | IRS 1099-K Form: Did You Get One for 2023? | 10 Tax Deductions to Consider for Your Return Created for {EMAIL} | [Web Version]( February 25, 2024 CONNECT WITH KIPLINGER  [LinkedIn]( [Facebook]( [X]( [Youtube]( [Youtube]( [Tax Tips]( [SIGN UP]( ⋅ [WEBSITE]( [] Tax Refunds [] [Tax Refunds Are Lower This Year. Here’s Why]( [Tax Refunds Are Lower This Year. Here s Why]( (Getty Images) Are you expecting a tax refund this year? The IRS has already issued 7 million refunds totaling around $13 billion. However, according to IRS data, this is a decrease of more than 50% compared to the same period last tax season. As of early February, the average tax refund was just under $1,400, about 30% less than the average refund at the same point last year. These early numbers may seem alarming. But don’t worry just yet. [Here are some insights into why this is happening and whether you should expect a lower refund this tax season](. [] Reporting [] [IRS 1099-K Form: Did You Get One for 2023?]( [IRS 1099-K Form: Did You Get One for 2023?]( (Getty Images) IRS reporting requirements for the 1099-K form have confused many. That is due to several changes involving a federal tax reporting rule that requires third-party payment networks, including apps and online marketplaces, to send the form to millions of online sellers. The 1099-K shows the money you have received through third-party payment processors like Venmo, PayPal, etc. However, it can also come from other online sales platforms. To better understand the 1099-K reporting requirement, it is important to know which online platforms might send you the form, what to do with it if you receive one, and [the latest 1099-K rule delay from the IRS](. [Top 5 Wealth Management Firms Revealed]( Asset growth and preservation are two sides of the same coin. Working with a top wealth management firm can provide access to strategies for all of life's different stages. Here's the list of top U.S. firms for individual investors. [See the list]( ADVERTISEMENT [] Deductions [] [10 Tax Deductions to Consider for Your Return]( [10 Tax Deductions to Consider for Your Return]( (Getty Images) The 2024 tax season is well underway, and if you don't have a valid extension from the IRS, you will need to file your 2023 federal income tax return by April 15th this year. But before you file, it's worth considering some frequently overlooked tax deductions and credits. Since deductions are subtracted from your income, claiming these tax breaks, if you qualify for them, could lower your tax liability or in some cases, result in a tax refund. Keep in mind that some tax deductions on this list require you to itemize rather than take the standard deduction. [To learn which ones, keep reading](. Featured Content Sponsored Content from The Kiplinger Tax Letter [Stop Overpaying on Your Taxes.]( Get a [FREE ISSUE]( of The Kiplinger Tax Letter and never pay one cent more than necessary on your taxes, for yourself, your business, or your clients. Then save up to 58% off the cover price to subscribe, and get exclusive special issues such as New Tax Rules This Year, Year-End Tax Planning, or other topics. [CLICK HERE]( [] Capital Gains [] [Avoiding Capital Gains Tax: The 121 Home Sale Exclusion]( The Section 121 Exclusion is a tax provision that helps homeowners reduce capital gains taxes after selling their homes. If you meet specific requirements, you can exclude up to $250,000 (up to $500,000 for joint filers) of capital gains from the sale of your primary residence. However, there are eligibility tests and numerous exceptions that may apply. As a result, it's important to know the requirements before determining whether you qualify. Here’s some information to get you started. [Read More]( [Is your money working hard enough?]( It should be! Learn how Betterment's automated investing and savings technology can make your money hustle, while you don't. [LEARN MORE]( ADVERTISEMENT [] In Case You Missed It [] [Seven Tax Changes to Know Before You File]( Tax laws and regulations can change from year to year due to various reasons. Some changes occur because of inflation adjustments, while others are due to new legislation or IRS rules. This tax filing season, changes for the 2023 tax year are a combination of inflation adjustments and potential last-minute legislation from the U.S. Congress that might matter for your tax return. So, in case you missed it, here are seven changes in particular that can impact your tax bill. [Read More]( [You can do better than the 4% rule for retirement income]( Many advisors say you should only withdraw 4% of your savings at the start of your retirement. With Go2Income you'll get a plan with income that: 1. 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