With so many new credits and stimulus payments, it can be hard to keep track of all the changes. For example; How will the Child Tax Credit (CTC) affect your 2022 taxes? Keep reading to learn more and discover other useful tips for a smooth filing season.
How Will the Child Tax Credit Affect 2022 Taxes?
The main way the child tax credit will affect your 2022 taxes is that, according to the IRS, your refund can be “significantly smaller” this year compared to previous years.
The reason is that some tax credits that were increased to help Americans deal with the impact of the COVID-19 pandemic are returning to their 2019 levels.
For example, taxpayers who got $3,600 per dependent in 2021 for the Child Tax Credit will, if eligible, get only $2,000 for the 2022 tax year.
Another credit going back to its pre-pandemic amount is the Child and Dependent Care Credit, which now returns to a maximum of $2,100 in 2022 instead of $8,000 in 2021.
What You Need To Keep in Mind
So, as you can see, tax refunds will tend to be smaller in 2023 than in the two previous years.
In addition to this caveat, here are other things you need to know this tax season:
- Tax season began January 23, 2023
- The deadline to file and pay your taxes is April 18, 2023, however, the IRS has offered an extended deadline to the victims of the California storms (read all the details here)
- If you can’t pay your taxes, you should file on time and pay as much as you can by the due date. Then contact the IRS (or alternatively the tax experts at Delgado’s Insurance) to see if you qualify for an installment payment plan
- Filing electronically and choosing direct deposit are two simple ways to ensure you get your tax refund as soon as possible
- Beware of common filing mistakes, including missing or inaccurate Social Security Numbers (SSN), misspelled names, incorrect filing status, math mistakes, and unsigned forms.
Delgado’s Insurance: Taxes Made Easy
At Delgado’s Insurance, we have made it our mission to simplify tax filing while making sure that you stay compliant with all relevant laws and regulations.
We have locations in Riverside, California, and Bloomington, California. Contact us today by telephone (951-361-0084, 909-421-9003), email (mail@delgadosinsurance.com), or through our social media accounts (Facebook, Twitter).
