IRS Asks Certain Taxpayers to Hold Off Filing Returns

(KNSI) — The Internal Revenue Service is asking millions of taxpayers in Minnesota and 18 other states to hold off on filing their returns for the 2022 tax year.

The IRS said it had gotten numerous questions regarding special tax payouts last year and how that would affect their returns. A statement on its website says, “we are working with state tax officials as quickly as possible to provide additional information and clarity for taxpayers. There are a variety of state programs that distributed these payments in 2022 and the rules surrounding them are complex. We expect to provide additional clarity for as many states and taxpayers as possible next week.”

For people who received a state refund last year, it may only be considered taxable if they itemized deductions. If you already filed and received a refund, it does not mean you must file an amended return. If you aren’t sure whether you should hold off, contact a tax preparer and ask.

Landwehr Tax and Accounting Business Manager Ashley Kerzman says families with kids should expect a smaller refund in 2023. “We are now going back to pre-COVID levels of dependent care credits. Last year, it was increased a little bit due to COVID. This year, it’s going back down to $2,000 per child.”She says the child care tax and dependent health care credits are also going down 20% to pre-COVID levels. Kerzman says if you need help filing taxes, contact a provider sooner rather than later.”

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