Tax Trends and Tips to Help You Save on Your Upcoming Taxes
Newly released 2022 data from TurboTax provides key insights to help file next year
From the LifeMinute.TV Team
December 5, 2023
We are all looking for ways to save money, right? Well, Intuit TurboTax, America’s number 1 tax prep provider, has released new data and key insights on how Americans earned, spent, and saved on their taxes last year, what they can look forward to for tax year 2023, and how they can save on their upcoming taxes.
The findings were based on anonymized and aggregated data from returns filed last tax year with TurboTax. First, a reduction in the percentage of returns with refunds was more pronounced for low-income tax filers; the number of single tax filers in the lowest income category who received a refund in tax year 2022 dropped by 22 percentage points compared to 2021.
The percentage of filers with a 1099-NEC or 1099-K grew from 6.7 % to 8.1% between tax years 2021 and 2022, indicating there continues to be a rise in self-employment and side gigs.
Single parents or single filers with dependents filing as Head of Household (HOH) experienced an 8.6% increase in median Adjusted Gross Income (AGI) compared to 2.7% the prior year.
The percentage of filers reporting crypto transactions was still highest for the 25-34 age group, but crypto reporting has fallen across nearly all age groups in the tax year 2022. 2.34% of tax filers included crypto transactions in their returns.
What can we do to better ourselves in the coming year? Though some filers received lower refunds in 2022 due to COVID relief going away, keep in mind there are still tax credits to take advantage of, such as the Child Tax Credit of up to $2000 or the Child Independent Care Credit.
Also, the IRS made adjustments to many available tax deductions. For instance, the standard deduction, which was increased, is the highest in decades, so that should help people this coming tax season. Then, there are also moves you can make by the end of the year that can help your tax situation, like maximizing your retirement plans to build up your nest egg while lowering your taxable income.
Of course, you should enlist help from the experts. Last tax season, TurboTax processed 45 million tax returns and put 106 billion refunds in the hands of Americans. With more than 35 years of tax expertise, a network of tax pros, and Intuit’s GenAI, TurboTax can truly serve all taxpayers and small businesses regardless of their tax situation. Whether they want to do their taxes themselves, with help along the way, or hand their taxes off to a tax expert virtually or in person, TurboTax will help filers get the maximum refund they are eligible for.
To learn more about the TurboTax tax trend report and how TurboTax can help, visit the TurboTax blog.