CHARLOTTE, N.C. — This week tax season officially begins and that means the IRS will start accepting your taxes. However, you may not get as much of a refund as you did last year.
According to the IRS, 168 million Americans will file their 2022 taxes between now and April 18. This year some tax credits went back to pre-pandemic levels, so the IRS says don't expect to see as big of a refund.
SOURCES:
For 2021, the American Rescue Plan allowed for key credits to increase to help families offset expenses associated with the pandemic. The main three include Child Tax Credit, Dependent Care Tax, and Earned Income Tax.
"If you claim the child tax credit and dependent care credit, you will get less money than in 2022 cause the law went back to the old way," Steber said.
The Child Tax Credit is now back at $2,000 for families. It did reach 3,600 during the pandemic. According to the US Census Bureau, that change helped lift 2.9 million children out of poverty in 2021.
The Dependent Care Credit also dropped back down to $2,100 a big difference from the maximum of $8,000 in 2021. There were also no stimulus payments in 2022.
"Refund shock is something to plan for, especially if you enjoy some of those benefits," Steber said.
However, Steber said this won't affect all Americans, and depending on your situation, you might get more of a refund this year.
"If you started a side gig, had crypto currency, the list goes on and on.
You might have a new tax benefit this year, and you want to watch out for that as well," Steber said.
According to Steber, the best thing to do is get your taxes organized, so you are ready to file. Also, don't wait to file at the last second.
Contact Meghan Bragg at mbragg@wcnc.com and follow her on Facebook, Twitter and Instagram.
VERIFY is dedicated to helping the public distinguish between true and false information. The VERIFY team, with help from questions submitted by the audience, tracks the spread of stories or claims that need clarification or correction. Have something you want VERIFIED? Text us at 704-329-3600 or visit VERIFY.