Pandemic-era tax credits scaling back for 2022 tax season

Published: Jan. 25, 2023 at 10:16 PM CST
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ST. LOUIS, Mo. (KMOV) - Tax season began this week, and this one could be harder on your wallet.

Several pandemic-era tax breaks are expiring or being rolled back.

Pamela Ford is a Certified Public Accountant. She says you can expect smaller refunds and bigger balanced this year as a result.

“For those who are impacted, it certainly will be a difference.” Ford said. “All of those different acts that were enacted to help to stimulate the economy, they didn’t extend them.”

According to the Internal Revenue Service, the Earned Income Tax Credit maximum amounts were substantially reduced. The Child Tax Credit was reduced from a minimum of $3,000 per child to a maximum of $2,000 per child.

Layla Mayo is from St. Louis but currently lives in Atlanta. She says she expects her personal income taxes to stay roughly the same. However, the same isn’t true for her event planning business.

“With my business, probably,” Mayo said. “[Last year}, I probably ended up paying about $1,000 more.”

In Missouri, there are some new tax credits, targeted at helping foster parents and heads of households. Some shoppers at the Brentwood Promenade Wednesday morning are eager to file early, while others are happy to wait until April.

“I usually owe so I just wanna make sure I get it paid,” Richmond Heights resident Garrick Darby said.

“[It’s] not worth my time to do it early,” Maplewood resident Neal Gilb said. “I’ll just wait until the time that it’s due.”

The deadline to file 2022 tax returns is April 18. If you need more time, you can request an extension from the IRS here.