Tax season kicks off and be prepared for changes that could affect your refund

Got Credit / CC

You can begin filing your state and federal income taxes for 2022 today and be mindful of several changes that could reduce your refund amount. Connor Brown with LaPorte CPAs and Business Advisors said incentives for the pandemic are no longer in effect.

For example, the CARES Act allowed up to $600 of charitable donations as a deduction in addition to your standard deduction, for those married filing joint, even if you didn’t itemize.

“In 2022 we revert back to the old rules which are if you’re going to deduct charitable donations you have to be itemizing,” said Brown.

The enhanced child tax credit has also reverted. Brown said in 2021 it was up to $3,600 per qualifying child under five or $3,000 if they were under age 17.

“In 2022 we revert back to the pre-pandemic rules which are you get $2,000 per qualifying child 16 and under,” said Brown.

And the credit for child and dependent care expenses has dropped from a potential maximum of $8,000 to $2,100 dollars, reverting back to rules that were in effect before the American Rescue and CARES Act.

And in addition to smaller refunds, expect a longer turnaround time due to IRS staffing shortages. Brown said when in doubt have a tax professional prepare your taxes.

“The other thing I would tell anybody for any tax years is to make sure you’ve got good records to support any position you take on your tax return,” said Brown.