Tax refunds decreasing this filing season

Changes are coming to income tax refunds
Changes are coming to income tax refunds(KTIV)
Published: Jan. 31, 2023 at 6:02 PM CST
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SIOUX CITY (KTIV) - Tax season is here, and there are important changes coming in the way of tax refunds.

If you’re a parent with kids under the age of 18, and you qualify for a refund, the amount of that refund could be less this year.

The child tax credit was slashed by more than a third since you filed your 2021 tax return.

Bob Scott, owner of R.E. Scott Company, said he has already seen the reality that tax refunds will be lower after COVID relief dollars, and stimulus payments, inflated past returns. Scott said he has seen refunds this year that were about half of what they were last year.

Scott said the child tax credit, which amounted to as much as $3,600 to tax filers last year, has dropped to $2,000 this year.

“Those refunds are down on people with kids again, that, you know, I did one yesterday was $11,000. Here before was $5,100. This year, it’s a big number, that big difference,” Scott said.

Scott’s tips for tax filers? File early, ask questions, and don’t budget based on an expected refund, he said to look at your refund as a “bonus.”

“File as early as you can because the IRS gets busy and the refunds slow up seems like as they get further into it, you shouldn’t count on tax refunds. I mean, I think people the best thing is to break even,” Scott said.

You have a few more days to file your federal tax return. The filing deadline was pushed back from April 15 to April 18.