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The 2022 Tax Year Postcard is a great reminder that the tax season is upon us.  It can also convey some high level points to be aware of for the current year.  Hopefully you are here because you read the postcard and came to the website for the full and complete details on this upcoming tax season.  Thank You!  

The 2022 Tax season looks like it will be starting like a normal tax season.  The IRS has announced that the E-File system opened on January 23rd, 2023.  This is right in line with prior years.  Per Federal Law (PATH Act) ANY return containing the Earned Income Tax Credit or the Additional Child Tax Credits will have the refunds delayed by the IRS until February 15th or later.  

We have a full staff of tax professionals ready and willing to work on tax returns for the next few months.  We are back to an in-person tax preparation office where we prepare your tax return while you sit at our desk.  Preparing the return in this way allows us to ask and answer questions which has worked exceptionally well over the decades.  In March, 2020 we had to convert our entire operation to a drop-off only model of preparation due to COVID. This continued for the remainder of the 2020 tax season (which ended on July 15th, 2020) and was also in place for the entire 2021 tax season.  We were mostly back to live and in-person tax returns for 2022, but with a slightly higher percentage of drop off returns than normal.  We anticipate that the drop off percentage will again decline for this tax season and over 90% of the tax returns will once again be live and in-person. For more information on how our tax preparation process works, click 'HERE'. 

This tax year is a reversion back to normal.  Many of the major tax law changes for 2021 were for one year only and expired at the end of 2021.  There was some discussion by politicians that these would be extended beyond 2021, but they were unable to pass that bill into law and it died on the floor.  The Child Tax Credit of 2021 was either $3,000 or $3,600 per child (dependent on age), the Child Tax Credit of 2022 is back to $2,000 per child.  The refundable portion was the full amount of the credit for 2021, but for 2022 the refundable amount is once again subject to income limitations and the total amount available is $1,500 per child.

The Child and Dependent Care Credit of 2022 is back to 2020 levels.  This means a maximum credit of $600 for one child and $1,200 with a second child.  This is a substantial reduction from 2021 levels.  Due to these lower credit amounts, it is highly likely that any refund you may have received in 2021 will be lower in 2022, possibly even owing tax if the amounts are great enough.  So be aware that each tax year is its own separate entity with tax laws that differ from year to year.

Speaking of law changes, there is a new tax law for 2023.  If you plan on having new doors, windows, insulation, furnace, central air, or other energy efficient improvements to your home, be sure to discuss this with your tax preparer.  There is now an ANNUAL tax credit that is available for the next ten years until the year 2032.  After tax season is finished we will add a page with details on this website.

I hope this helps to provide a greater amount of detail than what can be conveyed in the post card. 

Best Regards,

Acc-U-Rite Tax