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IRS: Policy changes increasing 2022 tax refunds

Tax season is starting as millions of Americans prepare returns for the IRS in hopes of larger refunds for 2022.

Tax return form to submit to the IRS for a refund with cash in front of a blue background

Americans can start submitting their tax returns to the IRS on Jan. 24.

W-2 forms should be sent from your employer soon, if you haven’t received them already. They’re legally required to be sent by Jan. 31.

Fortunately for some, the American Rescue Act deployed a lot of policy changes that will work out to their benefit this year.

IRS: Use these calculators to estimate your tax refund

Here are 4 policy changes that will help taxpayers get bigger refunds from the IRS

Stimulus payments

$1,400 stimulus payments went out to millions of Americans in 2021, and millions who were eligible were missed.

You may still be owed a payment if you had a child in 2021 or lived abroad.

Millions of Americans live abroad, but only thousands received checks in 2021.

If you were missed and you qualify, you can claim missed payments on your tax return.

IRS: Free File is open, here’s what to know

Child tax credit

The American Rescue Act expanded the child tax credit by up to $3,600 for 2021.

Payments were sent to families that covered the first half of the payment in six installments.

In 2022 when you file your tax return, you can claim the second half.

Those who opted out or were missed entirely for some reason may claim the full amount.

The amount for 2020 and earlier was $2,000.

Child and dependent care tax credit

This credit was changed and now lets families collect up to $8,000 for their children based on qualifying expenses.

Families with two children under age 13 are able to get up to $8,000, while those with one child or dependent can get up to $4,000.

Expenses that can be claimed include daycare, baby sitting, housekeeping, after school programs, and summer camps, according to The Sun.

Child tax credit: Do I need to pay it back?

Earned income tax credit, or EIC

This tax credit is geared toward helping low income working families.

The former amount that could be claimed was $543, but for 2021 is $1,502.

The more kids you have the more you will get back.

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