Dear friend,
As you may know, tax season is upon us once again. While filing your taxes may seem overwhelming, there are many resources to help smooth the process, including those mentioned in this newsletter. I also wanted to highlight some changes that you should look out for while preparing to file for tax year 2022.
I am very pleased to announce that legislation I voted for means that the Internal Revenue Service (IRS) was able to hire thousands of workers to answer your questions and provide other support. So far in the first two weeks of this year’s filing season, the agency has been able to answer 88.6 percent of calls, up exponentially from the previous filing season.
In Milwaukee and across the country, there are taxpayer assistance centers where you can access free tax filing help if you qualify. Many centers can provide services to Spanish-speaking residents and don’t require an appointment. Find locations in Wisconsin’s Fourth here.
Many low- to moderate-income workers and families are eligible to claim the Earned Income Tax Credit (EITC), which can reduce the tax owed or result in a refund. For help determining if you qualify for the EITC, you can use the EITC Assistant. You may also want to use this IRS tool to help you determine if a person qualifies you for the Child Tax Credit (CTC) or the Credit for Other Dependents. If you’re eligible, don’t miss out on these opportunities to save or get back hundreds or thousands of dollars.
If you have claimed these valuable tax credits previously, keep in mind that there have been a few changes to certain tax credits this year, returning to pre-pandemic levels. Changes include amounts for the CTC, EITC and Child and Dependent Care Credit.
- Those who got $3,600 per dependent for the 2021 tax year for the CTC will, if eligible, get $2,000 for the 2022 tax year.
- For the EITC, eligible taxpayers with no children who received roughly $1,500 for the 2021 tax year will now get $560 for the 2022 tax year.
- The Child and Dependent Care Credit returns to a maximum of $2,100 for the 2022 tax year instead of $8,000 for the 2021 tax year.
Other notable things to look out for when filing your taxes this year include:
- More people may be eligible for the Premium Tax Credit, a refundable credit that helps eligible individuals and families cover the premiums for their health insurance purchased through the Health Insurance Marketplace. For tax year 2022, taxpayers may still qualify for temporarily expanded eligibility for the premium tax credit.
- Eligibility rules changed to claim a tax credit for clean vehicles. Review the changes to qualify for a Clean Vehicle Credit.
My Office is Here to Help
As always, if you have any questions, please feel free to reach out to my office at 414-297-1140. Take care.
Your friend,
Gwen
