01/03/2023
The IRS has made some major changes for this tax season. We are back to pre covid tax refund amounts. All of the major credits, and large refund amounts from last year are gone. This also means that you will only be able to claim 3 dependents. Previously, you were able to claim and get credit for more than 3 dependents. Now they are only giving the credit for up to 3 dependents, and then back to $500 per additional dependents. Take a look at what they are saying!
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.
