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Tax season: This is why experts say your tax refund could be smaller

Tax season: This is why experts say your tax refund could be smaller

Nashville, Tenn. (WTVF) – You might want to mark your calendars. In less than two weeks, tax filing season will officially begin. But beware, this year the IRS says your tax-refund could be smaller.

The IRS announced Thursday it will begin accepting electronic tax return 23 january, And this year, there are families warning Don’t count on a big refund.

As many COVID-related tax breaks expire, tax attorneys Matthew JohnsonThat said, your refund may be less attractive.

“Congress issued we all know the stimulus payments and also they expanded certain types of credits, specifically the Child Tax Credit and the Child and Dependent Care Credit. Coming this year, or really for the 2022 filing season Those credits were scaled back and there’s no more stimulus payment,” he said.

For some families, this can mean big changes.

In 2021, an $8,000 tax deduction is available for expenses such as daycare. But in 2022, it’s back to $2,100.

In the same year, the Child Tax Credit for children under 18 was $3,000. In 2022, it is $2,000 and applies only to children under 17,

“In some cases, some of these credits will result in a substantial difference for some families,” Johnson said.

According to the IRS, the average credit for tax season 2021 was $3,200.

Hoping for a refund like last year, Eleanor Bryan decided to get an early start this tax season.

“Oh yeah, I’ve already filled my luggage and received my estimated amount,” said Brian.

She was shocked to see her expected amount.

“It was quite a bit, even though it was almost double what I made last year,” she said.

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Johnson said he advises people to start organizing early by gathering the proper documentation. If you’re using a professional, Johnson said it’s important to make sure they’re qualified and have a preparer identification number. He also recommends filing electronically to process refunds faster.

“I see that in some cases, refunds can get lost in the mail. People can’t find them. So it’s better to have them deposited directly into your bank account, get them quicker, and then you’re good to go.” ready,” he said.

Johnson said the silver lining is an increase in the IRS next year. Income Range for Tax BracketsTo adjust for inflation.

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