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Rossen Reports: Why your tax refund may be smaller, how to increase it

Rossen Reports: Why your tax refund may be smaller, how to increase it
How? Yeah, if you're banking on that tax refund, I know so many of you are. There is one major reason it may be smaller this year and that's because *** bunch of tax breaks have changed since we last filed last year. We're going to go through all those. We're also going to show you ways to increase your refund to. All right, we got used to the government being generous because of the pandemic. But those days are over long over here. *** few, the big ones, the child tax credit, it used to be worth up to $3600 per child, but that tax break has dropped back down to *** max of 2000 per child. Big difference. The dependent care tax credit was up to $4000. Now, it's reverted down to 1050 per dependent. So, big change there Also back in 2020 and 2021, we were allowed to take what's called an above the line deduction for charitable contributions. The deduction was $300 for single filers and 600 for married couples. No more that's expired, done charitable contributions. You should still make them and you still get credit for them, but they go back to being under the standard deduction. But you know, there's always *** way to potentially increase your refund to as promised. Here are some ideas. One easy thing you can do if you have *** traditional Ira, not for Roth Iras, only for traditional Iras. You can contribute to it up until the deadline, the tax deadline and still help you with this year's tax filing. Basically, you're getting *** few extra months on the calendar this year to knock your income levels down for when you file. But you have to do that before you file. You can't file in March and then do it through April. It's when you file, we'll continue to bring you more tips this tax season. We are continuing to get them in and sorting them through for you and save you money here and on rossen reports dot com. That's all for today back to you.
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Rossen Reports: Why your tax refund may be smaller, how to increase it
Tax season may hold a major surprise for you this year. If you’re banking on that refund, there’s one major reason it might be smaller.That's because a bunch of tax breaks have changed since we filed last year. We got used to them being quite generous because of the pandemic, but those days are over. Here are a few of the big tax breaks that have changed. First is the Child Tax Credit. It used to be worth up to $3,600 per child, but that tax break has dropped back down to a maximum of $2,000 per child. The Dependent Care Tax Credit was up to $4,000. Now it’s reverted down to $1,050 per dependent. Also, back in 2020 and 2021, people were allowed to take an above-the-line deduction for charitable contributions. The deduction was $300 for single filers and $600 for married couples. That’s now expired. Charitable contributions go back to being under the standard deduction. Despite these tax break changes, there's always a way to potentially increase your refund. One easy thing you can do, if you have a Traditional IRA, you can contribute to it up until the deadline. But you have to do that before you file. If you are younger than 50, you can contribute up to $6,000 total for the 2022 tax year. The limit is $7,000 total for those aged 50 and older.

Tax season may hold a major surprise for you this year. If you’re banking on that refund, there’s one major reason it might be smaller.

That's because a bunch of tax breaks have changed since we filed last year. We got used to them being quite generous because of the pandemic, but those days are over.

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Here are a few of the big tax breaks that have changed.

First is the Child Tax Credit. It used to be worth up to $3,600 per child, but that tax break has dropped back down to a maximum of $2,000 per child.

The Dependent Care Tax Credit was up to $4,000. Now it’s reverted down to $1,050 per dependent.

Also, back in 2020 and 2021, people were allowed to take an above-the-line deduction for charitable contributions.

The deduction was $300 for single filers and $600 for married couples. That’s now expired. Charitable contributions go back to being under the standard deduction.

Despite these tax break changes, there's always a way to potentially increase your refund.

One easy thing you can do, if you have a Traditional IRA, you can contribute to it up until the deadline. But you have to do that before you file.

If you are younger than 50, you can contribute up to $6,000 total for the 2022 tax year. The limit is $7,000 total for those aged 50 and older.