Tax refunds in 2022: why many Americans got less than they bargained for

Many people in the United States have found that their tax refunds are not as great as they thought. There are several reasons to explain this. Edition Trademarks tried to figure everything out.

Photo: Shutterstock

One of the most common reasons your tax refund might be less is because you made more money last year than you remember, compared to 2020 most people worked more hours while some could either get salary increase, or a change of job, which could increase income.

Another reason some people received less tax refunds than they expected is due to the expanded child tax credit program, as families received half the $3000 or $3600 back in the second half of 2021.

On the subject: Federal and regional: what you need to know about different levels of taxes and refunds

“Most of the people I see get significantly lower returns, but this is mostly due to child tax advances received,” said Antonio Brown, a Flint, Michigan chartered public accountant and member of the Michigan Accounting Board.

“If a taxpayer received half of the full tax credit upfront, then the remainder of the credit will be listed on the tax return as a refundable tax credit of $1500 or $1800,” he said.

As Brown explains, his clients' tax returns are down 19% or so from last year. But he emphasized that in fact, everything can be much better than in 2020.

You may be interested in: top New York news, stories of our immigrants and helpful tips about life in the Big Apple - read it all on ForumDaily New York

“I remind the client that he received half of the loan up front, so in fact most of the time the return is higher,” Brown said.

Through February 25, the Internal Revenue Service (IRS) issued 29,7 million tax refunds, with an average refund of $3473, up 15 from the same period last year.

Read also on ForumDaily:

How To Save On US Health Care: Three Important Tips

'Lemon Law': An incredibly useful rule in the US that many immigrants do not know about

Top 9 Best Types of Retirement Accounts in the US

What you absolutely shouldn't say and do in the USA in order not to get into trouble

Ten types of retirement income that are not taxed

Jointly or Separately: What is the Best Way for a Couple to File a Tax Return?

Do you want more important and interesting news about life in the USA and immigration to America? — support us donate! Also subscribe to our page Facebook. Select the “Priority in display” option and read us first. Also, don't forget to subscribe to our РєР ° РЅР ° Р »РІ Telegram  and Instagram- there is a lot of interesting things there. And join thousands of readers ForumDaily New York — there you will find a lot of interesting and positive information about life in the metropolis.