Less Money for People’s Tax Returns as Some Tax Credits Go Back to 2019 Levels

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ERIE, Pa. (Erie News Now) — This year, you might see less money from your tax returns as some tax credits return to 2019 levels.

“The biggest change this year that were noticing with people’s refunds, is that if they have children, they’re getting less money this year due to the fact that the child tax credit and the earning income credit went back to what they used to be.,” said Office Manger of Liberty Tax Service, Jason Williams.

Another important aspect is to make sure that all your documentation is gathered and prepared before filing taxes.

“We do tend to see people come in early, saying they have everything, and a few weeks later they call and say we forgot about this form. So just make sure you have all your forms before you file your taxes, that way you don’t have to amended returns later on in the season,” William said.

With the growing popularity of digital assets like NFTs and cryptocurrency, it’s essential to understand their impact on your taxes.

“I think the IRS is going to be looking at that as an area that is going to get heightened attention because it’s becoming more and more prevalent. It’s very important to make sure you understand the tax rules surrounding those and your reporting things appropriately,” said partner at McGill, Power Bell & Associates LLP, Michael Neubauer.

Also to look out for this season are scammers and fraudulent activity.

“Individuals either by telephone or email, and or impersonating the IRS or some other government body, trying to get taxpayers to disclose sensitive information. That activity always picks up quite a bit,” Neubauer said.