Experts share advice about preparing 2022 tax returns
BATON ROUGE, La. (WAFB) - Experts are sharing advice as millions of people prepare to file their 2022 tax returns.
According to the IRS, more than 168 million tax returns are expected to be filed in 2023. For that reason, financial advisors urge people to file as soon as possible.
“They will be overwhelmed and short-staffed like many companies are,” said Gregory Ricks with Gregory Ricks and Associates.
Ricks said there are a few changes that people need to be aware of before preparing their 2022 tax return.
In response to persistent inflation, the IRS has released higher standard deductions.
“For married couples filing jointly, the standard deduction increase from $25,900 to $27,700. For single filers, the standard deduction increased from $12,950 to $13,850,” explained Ricks.
If you have children or other dependents under the age of 17, you likely qualify for the child tax credit, but it’s less than it’s been over the past two years.
“It reverts back to a maximum of $2,000 from $3,600,” Ricks said.
While tax rates themselves aren’t changing for 2023, the tax brackets are new.
“The IRS adjusts tax brackets because of inflation. Depending on your taxable income this year, you could be in a different tax bracket and subject to a different tax rate as well,” Ricks added.
If tax season couldn’t get any worse, expect significantly smaller refunds.
“There is no stimulus in 2022. Also, expanded deductions have gone back to pre-COVID amounts,” Ricks said.
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