Changes in the Tax Law for 2022
Some tax credits return to 2019 levels. This means that affected taxpayers will likely receive a significantly smaller refund compared with the previous tax year. Changes include amounts for the Child Tax Credit (CTC), Earned Income Tax Credit (EITC) and Child and Dependent Care Credit.
- Those who got $3,600 per dependent in 2021 for the CTC will, if eligible, get $2,000 for the 2022 tax year.
- For the EITC, eligible taxpayers with no children who received roughly $1,500 in 2021 will now get $500 in 2022.
- The Child and Dependent Care Credit returns to a maximum of $2,100 in 2022 instead of $8,000 in 2021.
- So many taxpayers especially those with more than one child will really feel the pinch.
- Plus taxpayers got pay raises and this pumped up their income so that they ended up losing money if they had previously qualified for the Earned Income Tax Credit.
- We recommend that taxpayers increase their paychecks so that they do now make themselves so dependent on a larger yearend refund. The average refund is $3,701 for individuals. That would be $308 extra for their budget every month if they would only adjust their withholding.
- For tax help call Rich Schickel at 520-668-3243