For tax year 2022 some tax credits that were expanded in 2021 will return to 2019 levels. This means that affected taxpayers will likely receive a smaller refund compared with the previous tax year. Changes include amounts for the Child Tax Credit (CTC), Earned Income Tax Credit (EITC) and Child and Dependent Care Credit.
To claim the Earned Income Tax Credit (EITC) , you must
If you are eligible for this credit, the maximum amount you could receive is:
The CTC is worth a maximum of $2,000 per qualifying child. Up to $1,400 is refundable. To be eligible for the CTC, you must have earned more than $2,500.
If you have income below the standard deduction threshold for 2022, which is $12,950 for single filers and $25,900 for married couples filing jointly , you may not be required to file a return. However, you may want to file anyway because you may be able to take advantage of several features and benefits in the tax system which could reduce the amount you owe, or in many cases, especially for people with low incomes, increase the amount you could receive in a refund. Some key factors to make sure you look out for include:
If you worked during 2022 and had taxes withheld from your paycheck, you may be able to get some or all of that “over-withholding” back in your refund. Make sure you get W2 forms from all your employers and enter that information into the tax form when you fill it out.
If you think you may receive a refund, here are some things to think about before you file your return:
Copyright © 2017 BFF Advisors - All Rights Reserved.