Are You Ready To File Your Taxes?

So you're ready to file and excited to received another large return similar to last year? Not so fast, there have been several changes that may affect your 2022 tax return this year.

• Elimination of stimulus payments that were paid out in 2020 and 2021.

• A reduction in the Child Tax Credit from $3,600 to $2,000 to qualifying tax payers.

• A reduction in the Earned Income Tax Credit for tax payers with no children from $1,500 to $560.

• A reduction in the The Child and Dependent Care Credit from a maximum of $8,000 in 2021 to $2,100 in 2021.

• The above the line charitable deduction that was allowed in 2021 due to Covid has been eliminated if you are taking the standard deduction.

• 1099-K will be sent to taxpayers for 3rd party payments for transactions in excess of $600. (A reduction from $20,000) The payments will not be treated as taxable income for the 2022 year, but taxpayers should take note and make adjustments as necessary.

For a list of additional changes, visit the IRS website here. You can also access your Federal tax account here to view current and past information concerning your tax returns, payments and records.