It is almost here already. The 2022 tax season is upon us and that means that folks are looking for deductions and credits to help pad those returns.
Over the last year, there were a lot of changes as far as taxes are concerned. Child tax credits, unemployment tax changes, changes to student loans, and more. With all that has gone on between this time last year and now, things can be a bit confusing.
First thing, the child tax credit. There has been a lot said about the credit leading up to this tax season. The credit will be fully refundable and was increased. Families can receive up to $3,600 for children 5 and younger. Those with children 6-17 will receive up to $3,000 per child. Newborns are also included in the credit. Families may have already received half of the total tax credit between July and December of last year.
Next, in the same group, families, those with dependents in their household might be eligible for a big tax break or refund. Those with children or other dependents can claim 50% of their care-related expenses. However, those max out at $8,000 for one child while two or more children max out at $16,000.
Then there are those this tax season that might have missed out on a stimulus check payment. If you are one of those individuals you may receive that payment via your tax return this year. The Recovery Rebate Credit is set to take care of that for those that missed out on the third payment.
Tax season can be a stressful time. So knowing that there are other deductions and options out there for you and your family can be a big relief.
IRS Warns This Tax Season Could Be ‘Frustrating’
While it is always good to get things done early, perhaps finishing your taxes early this year should be at the top of the list. According to the IRS, this tax season is going to be full of frustrating delays. So, those returns might take a little while longer to get into your hands than in years past.
Tom Costello with NBC, talked about the matter earlier this year on TODAY. “Listen, the bottom line is that the IRS right now is behind and in a very big way. It’s understaffed, it’s underfunded, it’s trying to work through the pandemic with staffing shortages and tax law changes. That could mean delays for you when you file your taxes. They are going to start accepting returns in two weeks, but for most of us, returns are not due until April 18.”
So, the good news, tax season lasts a while. Hopefully, by the time the IRS starts taking in returns they have figured out some of the main issues.