Due to the Expiration of Several Tax Credits/Stimulus Programs there are things that we want our clients to know related to Filing Individual Income Tax Returns (1040 Series)

  • Unlike 2020 and 2021, 2022 will likely not have additional stimulus checks, also known as Economic Impact Payments or the Recovery Rebate Credit. These checks were part of COVID relief packages, and the IRS issued more than 470 million payments in the past two tax seasons. No new stimulus checks are being discussed in legislation; therefore, taxpayers shouldn’t expect an additional $1,200, $600, or $1,400 per person in their tax refund.
  • Several tax credits are reverting to pre-COVID levels, which are comparatively smaller or limited to last year. This year, taxpayers will experience the Child Tax Credit (CTC) being worth $2,000 per dependent (down from $3,600 in 2021)–as well as no advance CTC monthly payments this year. The Earned Income Tax Credit for eligible taxpayers with no children will go back to $500 from about $1,500; and the Dependent Care Credit will go to a max of $2,100 from $8,000. These credits will also return to other age and income limits, which also means fewer taxpayers will be eligible for these credits.
  • There won’t be an above-the-line deduction for charitable donations for those who take the standard deduction. This deduction will revert to pre-COVID rules and only be available to those who itemize. For the past two years, taxpayers could deduct up to $600 on their tax returns.

Please contact our office as soon as possible to schedule your appointment if needed or if you have other questions for our staff!  Here’s to a Healthy and Safe 2023!!