Top Tax Stories of 2022 (That Still Matter for 2023)

Readers were interested in many important tax issues during the past year, but the most-read tax stories on Kiplinger.com involved questions surrounding state stimulus checks, federal income tax brackets, the Powerball lottery jackpot, and whether you’ll get a Form 1099-K in January from Venmo or PayPal.

So, in in case you missed some of these, here’s a look back and recap of Kiplinger’s top tax stories of 2022. And, a few of these tax issues could still be important for you this year.

Income Tax Brackets

During 2022, readers flocked to a story that answered a popular tax question—what are the income tax brackets? Knowing your income tax bracket is important because that tax bracket determines your tax rate (i.e., the amount of tax that you’ll generally be expected to pay on at least some of your income).

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There seven federal income tax rates are 10%, 12%, 22%, 24%, 32%, 35% and 37%. And that can be confusing sometimes, because those rates don’t change. But the federal income tax brackets (that get matched to those rates) do change, because they are adjusted yearly for inflation. That’s partly why you can end up in a different tax bracket from one year to the next and possibly end up paying a different tax rate on some of your income.

So, if you want to know what your income tax bracket will be for 2023, or want to double check your bracket for the 2022 tax year, see our updated story: What Are the Income Tax Brackets for 2022 vs. 2023?

How Much of the Powerball Jackpot is Taxed?

Hundreds of thousands of you wanted to know about Powerball lottery taxes in 2022. 

This story came about at the end of October when the Powerball Lottery jackpot climbed to an estimated $825 million. By November, the Powerball jackpot had ballooned to world record status—about $2.04 billion. And that had everyone wondering what the Powerball winning numbers were and how much someone would take home after taxes if they won the Powerball.

Well, the federal government will withhold 24% of the winnings off the top. But the exact amount of tax that a Powerball lottery winner will have to pay depends on factors including the amount of the jackpot, the payout option the winner chooses, the winner’s federal tax bracket, and the applicable state tax rate. 

And, in recent lottery news: while the Powerball lottery jackpot is climbing—again, the Mega Millions jackpot has reached $1 billion. 

If you’re interested, Powerball drawing days are every Monday, Wednesday, and Saturday. Mega Millions drawings are are every Tuesday and Friday at 11 pm ET.

New Stimulus Checks

2022 was a big year for stimulus checks. However, it’s important to note that the stimulus checks that went out last year were not the stimulus checks from the federal government that many people received during the COVID-19 pandemic. Instead, the 2022 stimulus checks and tax rebate checks came from various states. That’s because a lot of states were sitting on budget surpluses and as a result, issued “stimulus” checks and tax rebates to eligible residents.

For example, California stimulus check payments were sent throughout the year. And in Virginia, eligible residents who filed their 2021 Virginia tax return by November 1, received a Virginia tax “stimulus” rebate of up to $500.

In Massachusetts, there’s still time for eligible residents to file their 2021 Massachusetts tax return. If they do so, they can receive their portion of the nearly $3 billion in Massachusetts tax refunds that were sent out in November and December.

If you haven’t received a stimulus check for 2022 and think you are eligible, check our latest updates on state stimulus checks and tax rebates. (Some states are sending those checks during 2023 as well.)

The 1099-K Amount

There has been a lot of confusion over an IRS reporting threshold for the Form 1099-K.

Basically, a new $600 1099-K tax reporting threshold meant that millions of people who got paid for goods or services through third-party networks like PayPal, Venmo, Square, etc. would receive a 1099-K in January if they were paid more than $600. (The previous trigger for a 1099-K was $20,000 and 200 transactions.)

But, in the face of backlash from some lawmakers and advocacy groups, the IRS announced, at the end of 2022, that it is delaying the implementation of the so-called $600 rule for 1099-Ks for one year. That delay means that people with a smaller amount of payments for goods and services from third party payment networks (which includes a wide range of businesses—not just PayPal and Venmo) won’t receive a 2022 1099-K in January.

However, people who meet the previous threshold of $20,000 in payments for goods and services on third-party networks will still receive a Form 1099-K for 2022.

For more information on what the Form 1099-K is and what’s going on with the $600 rule delay, see You Might Not Get a Form 1099-K From Venmo, PayPal, or Cash App For 2022.