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Chicago tax expert explains why families can get fewer reimbursements this season

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Tax season is officially underway, and finance and tax experts say it could come as a surprise to some people filing this year.

“I think people will get less tax refunds,” said Judy Strauss, a registered agent who runs Strauss Tax Services in downtown Chicago. I am not aware of it,” he said.

The federal government has rolled out several tax incentives to help struggling families during the coronavirus pandemic.

“People got more refunds than they thought they would because we had very large stimulus checks and very large children’s credits and advanced children’s credits,” Strauss explained.

But now, Strauss said those benefits of the pandemic have expired.

“Many things like child benefits and child care benefits are back to what they were before the pandemic,” she said.

Financial and tax experts said families filing these claims could receive less rebates than in previous years. This list includes enhanced child credit, child and dependent support, earned income tax, and charitable deductions.

“The childcare tax credit is number one on our list during the 2021 pandemic,” said Dan Rayhill, managing director of Wintrust Wealth Management. “It has increased to $3,600 for children under 6 and $3,000 for children under 17. Now it’s back to pre-pandemic rules and will be $2,000 per child this year. .”

The IRS is encouraging people to file their taxes electronically, and says taxpayers must receive their refunds within 21 days of filing. That reimbursement is likely to be reduced for many, with finance and tax experts saying families need to prepare for next season.

“We might reconsider withholding taxes from employers, or if you’re self-employed, increase your quarterly tax payments,” Rahill said. We’ve budgeted for the fact that we’re planning on the 15th and when we’re filing for tax refunds, but that’s the first thing we do if we want to budget for something like that.”

In a November release, the IRS said there could be fewer refunds in 2023.

“Taxpayers will not receive additional stimulus payments in the 2023 tax refunds because there were no economic impact payments in 2022.”

The filing deadline is April 15, according to the IRS.

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Written by Natalia Chi

Chicago Popular; Chicago breaking news, weather and live video. Covering local politics, health, traffic and sports for Chicago, the suburbs and northwest Indiana.

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