Some tax filers might even see a smaller refund than anticipated this yr. Lisa Greene-Lewis, CPA and TurboTax tax skilled, explains why.
If you’re one of many fortunate tax filers to already obtain their tax refund, you could have observed that it’s lower than anticipated this yr.
Lisa Greene-Lewis, CPA and TurboTax tax skilled, discusses stimulus funds, the Child Tax Credit, the Child and Dependent Care Credit, and extra.
Read the complete Q&A under or watch the video above.
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Video Transcript:
The American Rescue Plan
Tracy Byrnes: So plenty of discuss this yr about taxpayers getting decrease refunds. What? Lisa Greene-Lewis is right here, TurboTax skilled and CPA, to clarify to us. I imply, you understand, refunds are virtually turning into like an anticipated factor that you just get within the mail. And now we’re saying possibly not a lot this yr. What’s happening?
Lisa Greene-Lewis: Well, one factor to concentrate to is yr over yr, there are the explanation why folks would possibly see a decrease refund, and that is if you happen to owed a state tax debt, the Treasury could do an offset of your federal taxes. What persons are seeing this yr is beneath the American Rescue Plan, plenty of provisions have been expanded significantly, like, as an example, the Child and Dependent Care Credit that elevated as much as $8,000 if you happen to had two or extra children. And it is going again to pre-American Rescue Plan all the way down to $2,100. Same with Child Tax Credit. That elevated as much as $3,600 and goes again all the way down to $2,000. So if you happen to have been eligible for these provisions, you can see variations. In addition, the flexibility to say the Recovery Rebate Credit for the final stimulus cost that has gone away. So all of these, in case you are eligible, can affect what you are seeing in your tax return.
But one factor to remember, these have been just a few provisions to supply aid. The legal guidelines that have been expanded, they did not actually change. But they are going again to what they have been earlier than.
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Tracy Byrnes: Right, and there is additionally the conventional discourse of life, proper? You could have gained a job, misplaced a job, you could have added a baby. There’s like plenty of life modifications that would have occurred as properly that improve or lower your refund alongside the way in which. So ensure, typically it looks like once we look again on 2022, it was a lifetime in the past and also you virtually neglect about what occurred, which is all of the extra why it is vital to be sure to get each deduction and each credit score. And Lisa and I’ll proceed to speak about that by way of this entire sequence.
Lisa Greene-Lewis: You might come to TurboTax and have your taxes absolutely ready by a TurboTax Live full-service tax skilled, who can do your taxes in a single assembly whereas they’re getting ready your taxes. And then TurboTax has a brand new tax return Lifetime Guarantee, and it ensures your return so far as calculations and tax refund, and audit help for as much as seven years. And that is the lifetime of the tax return.
Tracy Byrnes: But do not be alarmed in case your refund is completely different this yr. Lisa Greene-Lewis, TurboTax skilled and CPA, thanks for that clarification.
Lisa Greene-Lewis: Thank you for having me.
Source: www.thestreet.com”