The last couple years have been pretty stellar for tax returns.
I’ve been quite pleased with my returns, and have been able to take some fun trips with the money.
But, that might not be the case when it comes to tax returns this year.
This is super bad news, especially since everyone is forecasting a recession in the coming year.
It turns out that the end of this year will see the expiration of many pandemic benefits that were put in place to help Americans ease their pockets during the crisis.
According to Mark Steber, chief tax information officer at Jackson Hewitt, the end of financial benefits might mean that families will see smaller tax refunds when they file after the beginning of the year.
One big benefit that is going to be changing is the Child Tax Credit.
When I say “changing,” it’s really going to be reverting to its pre-pandemic amount.
Prior to the pandemic, the CTC was $2,000 per child. Still a pretty good amount, but it was raised to as much as $3,600 per kid to help us through the pandemic.
Depending on how many kids you have, this can be a pretty hefty cut in the tax returns that we’ve seen during the last couple years.
You’re probably going to have not as pleasant [a tax return] experience as you had last year.
Mark Steber
So, bottom line, file those tax returns like normal, but don’t expect large refunds.
A good rule of thumb is to expect close to what you received BEFORE the pandemic hit.
Of course, that is assuming that your job situation hasn’t changed.
Everyone’s situation is different, so unfortunately you have to plan accordingly.
