This year should provide an easier tax return then we've seen the last 2 years. There are no stimulus checks to account for and no child tax credit money to reconcile. So a few things to note that may have given you a bigger tax refund last year:
1. The child tax credit went back to what it has been for years. The maximum amount of the child tax credit will be $2000 (with up to $1500 being refundable) and it is only for those children under 17. Last year there was a special rule that allowed for children that turned 17 to still be counted for child tax credit. Unfortunately now those 17 and over will only qualify for the other dependent credit, which is $500.
2. If you had child care expense last year the credit no only allowed for more expenses but a larger credit even for those with more income. This year we are back to the standard numbers we've had for years--You are allowed $3000/child (or $6000 total) for child care expenses. With a maximum credit of $2100 (however it's based on your income so most people will only see a $1200 credit). Also this credit is non-refundable so only offsets your taxes.
3. There are no additional stimulus amounts this year. If you didn't get the stimulus money in previous years because you haven't filed your return you still have time to do so.
4. Charitable deductions are only for those who itemize this year. For the last couple of years we've been allowed a small amount of charitable donations to be taken against income even for those who took the standard deduction. However that deduction is no longer available.
1. The child tax credit went back to what it has been for years. The maximum amount of the child tax credit will be $2000 (with up to $1500 being refundable) and it is only for those children under 17. Last year there was a special rule that allowed for children that turned 17 to still be counted for child tax credit. Unfortunately now those 17 and over will only qualify for the other dependent credit, which is $500.
2. If you had child care expense last year the credit no only allowed for more expenses but a larger credit even for those with more income. This year we are back to the standard numbers we've had for years--You are allowed $3000/child (or $6000 total) for child care expenses. With a maximum credit of $2100 (however it's based on your income so most people will only see a $1200 credit). Also this credit is non-refundable so only offsets your taxes.
3. There are no additional stimulus amounts this year. If you didn't get the stimulus money in previous years because you haven't filed your return you still have time to do so.
4. Charitable deductions are only for those who itemize this year. For the last couple of years we've been allowed a small amount of charitable donations to be taken against income even for those who took the standard deduction. However that deduction is no longer available.
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