Americans can start filing their tax returns with the IRS this month, and many are hoping to see larger refunds thanks to some policy changes.
The IRS will begin accepting tax returns Jan. 24, but there may be worse delays in 2022 than in 2021.
The IRS simply doesn’t have enough resources. Things are still running slowly from the pandemic.
Despite these things, Americans still need to collect their tax documents and prepare themselves for potentially larger refunds this year.
Here are a few ways your tax refund from the IRS might increase with changes to tax laws
Regular tax refund
If you paid too much in taxes in 2021, you’ll see a refund.
With wages rising last year, people may see even bigger average refunds.
Child tax credit
The child tax credit was always worth $2,000.
In 2021, it went up to $3,600 for those with kids under 6 and $3,000 for those with kids 6 and up.
This happened thanks to the American Rescue Act.
Families originally received an advance on the credit worth up to $1,800.
That money was sent out in 6 monthly payments worth up to $300 from July through Dec.
Now parents have the chance to claim the second half on their tax returns this year.
Child care and dependent credit
This is another credit that benefitted under the American Rescue Act.
Parents with kids can claim this credit worth as much as $8,000 to offset the costs of caring for a child while working.
This credit can cover things like housekeeping, transportation, daycare, and other similar costs.
This can be used for children under the age of 13 or dependents with disabilities.
Parents must make $125,000 or less to qualify.
If you missed out on the $1,400 stimulus check that was sent in March, you have a chance to claim it on your taxes.
This is mainly going to happen for people who had kids in 2021 or were living abroad and missed the check.
You can claim the missing payment using the recovery rebate credit.
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