Changes were made to many tax credits and deductions in 2022 that experts say could lead many people to owe money when they file their IRS returns in 2023. Here are three of the most important changes to be aware of before you file your 2022 return.

1. Standard deductions are larger

For 2022, the standard deduction increased $800 to $25,900 for married couples filing jointly. For single taxpayers it increased $400 to $12,950. And for people using the head of household filing status, the standard deduction increased to $19,400, up $600 from 2021.

2. Income tax brackets shift

Tax brackets have gone up for 2022, but the tax rates stay the same. This means that more of your money is taxed at lower rates as opposed to the year before.

3. The child tax credit is smaller

For the CTC, the credit amount will drop to a maximum of $2,000 per dependent under age 17 for 2022, down from $3,600 for children under age six or $3,000 for children under age 18 in 2021. Additionally, taxpayers once again need to have at least $2,500 in earned income to qualify for the refundable portion of the credit (in 2021, the income floor was temporarily suspended).

So what does all this mean for your tax return?

People maybe wind up owing or getting a smaller refund than they did the past couple years. Filing taxes can be stressful, but being prepared can help it go as smoothly as possible. Our accountants can take the stress out of filing your taxes and make sure you are getting the best return on your tax filing. Call us today to start preparing for this tax season. 402-932-8815