![]() The IRS also appears to be on top of the returns coming in. Of the 168 million individual tax returns the IRS expects this year, the agency has received 90.1 million so far, almost on track with the nearly 91.3 million received last year at this time. The loss of the above-the-line charitable deduction and the expiration of the mortgage insurance premium deduction also could factor into lower refunds. The Child and Dependent Care Credit - which covers out-of-pocket expenses for child care and day camps - was reduced this year to $2,100 compared with last year’s $8,000. Last tax season, these filers got as much as $1,502 for the credit, which also had a higher income threshold then. The maximum EITC amount that single filers with no children are eligible for is $500 this year. It’s also not fully refundable anymore, meaning taxpayers won’t receive the full credit if it exceeds the amount of tax they paid - a change that hurts the lowest-earning families the most. ![]() ![]() Those credit amounts are now back to pre-COVID levels.įor example, the CTC declined to $2,000 per child dependent versus $3,600 last year. The average refund last year was 14.3% more than in 2021, with the increase largely due to temporary enhancements to the Child Tax Credit (CTC), Earned Income Tax Credit (EITC), and Child and Dependent Care Credit. Credit: Getty Images Loss of pandemic breaks
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