⏰ It’s February, and the clock is ticking. You should have received all of your W-2’s and 1099’s but are you aware of all the changes that may affect how much you will get as a refund? We have the information you need this February to understand tax season a little better.

WHAT'S STEEPING NOW

💸 There were a lot of changes this tax season which will ultimately result in millions of people getting less money than they did last year.

💰 The investments you made this year could generate a bigger tax bill even if you didn’t make money on them.

🏛️ Some people in Congress think we could do without our current tax system, but the alternative may not be any better.

🕵️ Scammers are looking to capitalize on tax season, so experts suggest filing early to avoid any potential risk.

PIPING HOT TEA

Changes for the 2023 Tax Season

The 2022 tax filing season is officially open, and the TL;DR is that some people may get a smaller refund this year. In 2021, the American Rescue Plan (ARP) delivered immediate relief to families and workers impacted by COVID-19. The criteria to receive the Child Tax Credit (CTC), the Earned Income Credit, and the Child and Dependent Care Tax Credit (CDCC), are reverting to pre-pandemic standards, and it’s important to have a realistic expectation of how much money people can expect to receive in their tax refunds this year.

If you didn’t earn any income this year, you’re not going to be eligible for any of these three credits. 

If your adjusted gross income (AGI) exceeds $400,000 on a joint return or $200,000 on a single or head-of-household you may qualify for some of these credits, but at a reduced amount. 

If you have children you’re going to get a smaller refund than last year. The amount that people will receive for the Child Tax Credit and the Child and Dependent Care Credit has decreased by over 50%.

If you paid money in childcare, you’re entitled to a range of credit based on how many children you have and how much money you make. You can get between 20-35% of $3,000 for one child or $6,000 for two or more children.

If you're under 25 or over 65, you no longer qualify for the earned income credit. Last year it was available for people 19 and up, but this year the earned income credit is only for people between the ages of 25 and 65.

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THE SOCIALLY TAXING

(source: plastergallery on Instagram)

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