Tuesday, January 31, 2023

Experts Warn New IRS Tax Rules Are a ‘Double Whammy’ for Families

 After the Internal Revenue Service issued several releases warning about potentially lower tax refunds this filing season, some analysts say that it could put strain on some families who may have anticipated an expanded child tax credit. (William Thomas Cain/Getty Images) The IRS has warned that it may lower refunds for some taxpayers due to the expansion of the Child Tax Credit

Analysts Sound Off

  • Financial expert Lynnette Khalfani *** told NPR that there are four main reasons why 2022's returns will be smaller
  • No more stimulus checks
  • The enhanced child credit-that's gone
  • A pandemic-era tax break for charitable deductions was killed
  • Some individuals might face taxes on investment gains

What the IRS Says

  • Some taxpayers should expect a smaller refund due to the expiration of pandemic-related stimulus payments and changes to child credits
  • The child tax credit will shrink when parents file their 2022 taxes
  • Normally, parents get about $2,000 for each of their children, but in 2021, the benefit increased to $3,600

How to Get the $2,000 Child Tax Credit

  • For 2022's tax year, a child must have been under age 17 (i.e., 16 years old or younger) at the end of the tax year for which you claim the credit.
  • The child has to be either your own child, an adopted child, a stepchild, or a foster child.

https://www.theepochtimes.com/experts-warn-new-irs-tax-rules-are-a-double-whammy-for-families_5018888.html

No comments: