Tax News Update - 13th Edition
Biden signs spending bill
The new government spending bill is set at $1.7 trillion and will fund the government through next September. The 4,000 plus page bill will take a while to understand, but initial reviews indicate changes to most tax advantaged retirement plans. The most relevant and current change is the change in Required Minimum Distributions (RMD) from age 72 to age 73 beginning in 2023. More details will follow.
IRS announces new mileage rates for 2023
Gone are the days of announcing this rate in October/November of each year. The new standard mileage rate goes up 3 cents to 65.5 cents per mile beginning in 2023. Charitable miles is unchanged at 14 cents and Medical/Moving goes up to 22 cents per mile, so please plan accordingly.
IRS announces delay in 1099-K Reporting threshold change
The IRS is now calling 2022 activity a transitional year for moving the reporting threshold for third party transactions like Venmo, Ticketmaster, SeatGeek and Ebay/Amazon transactions down to $600. It is resetting the dollar limit back up to $20,000 and/or 200 transactions for 2022 ONLY. Given the late change, millions will probably still receive the 1099 K tax forms in January and February.