Citizens of the US might be getting a shock regarding their tax refund. American taxpayers will be introduced to many shocking and unpleasant processes while they make their tax return filing in 2022. This is mainly because of the reason that several of the pandemic benefits that were being availed have now expired. As a result, families will witness smaller return money after they file their 2023 taxes. It is said that the average amount of tax refunds saw a 14% increase in 2021 due to additional pandemic benefits.
Pandemic Benefits Stripped From Tax Refund
Despite the reduction in tax refunds, American citizens will continue availing benefits from the tax credit program for children as mentioned by Steber. In addition, the IRS has been giving warnings to taxpayers regarding the shocking tax refund in the upcoming year.
The IRS has been making American taxpayers aware of the smaller tax refunds. Although most benefits are prevailing, the present law of tax has withdrawn the pandemic benefits. The tax laws are now again following the pre-pandemic, smaller amounts. The CTC provided $3,600 for each child during the pandemic but now every child will get $2,000. Although lawmakers have been fighting to reinstate the pandemic benefits permanently to prevent child poverty.
Disadvantages Of Tax Laws
Americans are no longer going to receive federal stimulus checks that were coming their way under the American Act of Rescue Plan. The credit income tax on earned money is meant to provide assistance to moderate and low-income workers. These households were receiving credit of almost $1,500 which has now become a mere $560 under 2022 tax refunds. The $6,164 EITC for low-income households has reversed to $5,980.
The CARES Act permitted couples to get an extra $600 while individuals almost $300 during the coronavirus period. This has also stopped now.