(WJW) – As 2022 draws to an end, the Internal Revenue Service wants to remind taxpayers about some changes in the upcoming tax filing season that could affect their budget.
According to the IRS, some tax credits will be returning to pre-pandemic levels. That means many taxpayers will likely get a much smaller tax refund than they did last year.
Eligible taxpayers who received $3,600 per dependent in 2021 for the Child Tax Credit will get $2,000 this time around.
For the Earned Income Tax Credit, eligible taxpayers without kids who received $1,500 in 2021 will instead get $500.
The Child and Dependent Care Credit is going back to a maximum of $2,100 in 2022. It was previously $8,000 in 2021.
According to the IRS, the refunds could be smaller because taxpayers didn’t receive stimulus payments this tax year.
As reported by CNBC, the refund is based on taxable income calculated by subtracting itemized deductions from your gross income.
Additionally, taxpayers who take a standard deduction can’t make an above-the-line deduction for charitable donations this time. In previous years during the pandemic, taxpayers were able to take up to a $600 charitable donation tax deduction on their returns.
The deadline to file 2022 taxes will be April 18, 2023.
Learn more about how to prepare for the upcoming tax season on the IRS website.