Last filing season, parents of young children took advantage of the extended child tax credit. This is not the case this year.
TOLEDO, Ohio – You probably already have W-2 forms and other documents required for filing taxes. Tax experts say you may not want to wait to start the filing process. This is because the returns may not be as big as last year.
If you are a parent of young children, you remember how to get extra money as an extension child tax credit last year.
Instead of a $2,000 credit, it can be up to $3,600. CPA, said Charlie Hyde. He is a director of CLA (CliftonLarsonAllen LLP.)
For this filing season, Hyde said the credit amount has been reduced to its previous amount, which was $2,000 per child 16 and younger.
That means tax preparers should start filing their taxes sooner rather than later this year, Hyde said.
“You’re going to find out how much you’re going to get back, and I think you’re going to see it’s a lot less than in 2021,” he said. “And then you might even owe. So it’s better to know now so you have time to save up the amount you’re going to owe when you get back.”
Another deduction you can qualify for is related to charitable donations, Hyde said.
In 2020 and 2021, taxpayers could claim up to $600, even with standard deduction. In 2022, this is not the case.
“People who claim the standard deduction, which is 90 percent of filers today, take that standard deduction. You won’t have the additional deduction that you had in 2021,” Hyde said.
Hyde said the only way to get those charitable deductions is this itemizing your returnwhich he says doesn’t make sense to most people.
Hyde also urged people making less than $73,000 a year to take advantage free file submission services.
The deadline for taxation this year is April 18.