Well I got quite a surprise today
While doing my taxes, I claimed my wife as a dependent. She does not work. Instead of getting a deduction as I did last year I find out they snuck a tax raise in the form of removing dependent deductions they now give you a $500.00 credit. This cost me $1,500.00.
It was sneaked in (not sure if snuck is a word) via the IRA which Bitch McConnel and Kevin McCarthy helped push through.
DaiHuy :” While doing my taxes, I claimed my wife as a dependent. She does not work.
Instead of getting a deduction as I did last year I find out they snuck a tax raise in the form of removing dependent deductions
they now give you a $500.00 credit. This cost me $1,500.00."
(From the article): “Financial expert Lynnette Khalfani-Cox told NPR on Jan. 22 that there are “four main reasons” that cause will cause 2022’s returns to be smaller. “
“The first is: no more stimulus checks.
The second is that what was called the enhanced child credit—that’s gone,” she noted.
A third reason is that a pandemic-era tax break for charitable deductions was killed for this year, she said,
noting that the fourth reason is because some individuals might face taxes on investment gains. “
”Joe Buhrmann, a financial planner and senior financial planning consultant at eMoney Advisor, told CNBC on Friday that the smaller refunds this season
and relatively high inflation could be a “double whammy” and “nasty surprise” for some people, namely families.”
”The IRS has already issued notices about potentially smaller tax refunds, noting in November that “taxpayers will not receive an additional stimulus payment with a 2023 tax refund because there were no economic impact payments for 2022.”
”Additionally, the agency said, it will be more difficult to claim a deduction for a charitable contribution on a 2022 tax return. “