|

Why Your Tax Refund May Look Different This Year (2022)

Tax refunds may be smaller in 2022 for some.

Many people are beginning to gather their paperwork to begin completing their tax returns.  However, tax refunds may be smaller this year for some filers.

Make extra cash

Instacart Shopper - You can either shop in-store for others, or you can choose to do both the shopping and delivery. The great part about being an Instacart shopper is that you can make your own schedule and get paid weekly!

Survey Taker - Take some online surveys in your spare time to create some extra income. This won't be a full-time opportunity but can generate a little extra cash.

Rover - Pet Sitter - Get paid to play with pets. As a pet sitter, you can set your own schedule and prices. You can offer pet boarding, dog walking, doggy daycare, house sitting, or drop-in visits. And - you get paid two days after you complete your service!

What will affect my tax refund in 2022?

Child tax credit payments

The American Rescue Plan increased the child tax credit from $2000 per child to $3,000 or $3,600 per child.  Children ages 0-5 qualified for $3,600, while those ages 6-17 qualified for $3,000.

Payments were sent once a month beginning on July 15, 2021.  Parents received payments of $250 or $300 per child each month.

These child tax credit payments were based on their 2020 taxes and was an advance on their 2021 tax refunds.

Parents who saw an increase in their income in 2021 might owe money on their tax return this year.

Those who typically owe money on their taxes but received the CTC payments, may also find themselves owing more money this year,

However, parents who had a new child in 2021 may receive more money in their refund.

If parents received child tax credit payments, then they should expect to receive Letter 6419 in their mail in late January.  Make sure to wait to file taxes until after receiving these forms.

Third stimulus checks

Those that never received their third stimulus check in early 2021 might be eligible for the Recovery Rebate Credit with their refund.  Be on the lookout for Letter 6475 from the IRS in the mail in January.

Student loan interest

Student loan payments and interest charges have been paused until May, 1, 2022.

Because student loan payments and interest rates were paused during 2021, those that usually deduct their student loan interest may find their refund reflecting this change.

Keep up to date with the news updates from the IRS.

tax refunds 2022

Photo by Nataliya Vaitkevich from Pexels

Similar Posts

Leave a Reply

Your email address will not be published. Required fields are marked *