TAMPA, Fla. (WFTS) — Tax season is officially here. Monday marks the first day the IRS is processing tax returns. However, you might notice a change this year with your refund check.
Albert Johnson didn't waste any time. He added getting his taxes filed at Elite Tax Experts and Financial Service to his to-do list.
"I have a professional doing it and I used to do it myself. But all of a sudden, I just could not seem to connect with the material that I was reading. And I like to attribute it to just getting a little older now. I can't comprehend this much," he said.
Johnson isn't alone. There are plenty of changes this go around that may be confusing. Elite Tax Expert Dionne Stiff explained this year is different.
"It's been talked about a lot. The difference is there's a lot less credits," he said.
The last two tax seasons included credits mostly related to COVID-19: such as the Child Tax Credit, Recovery Rebate Credit, Earned Income Tax Credit, as well no more stimulus checks.
RELATED: IRS expects better tax season service thanks to Inflation Reduct Act funding
"Those are no longer there. It's gonna be similar to what it was back in 2019 as opposed to how it was last year," he added.
Stiff said you'll see those changes right on your tax refund.
"If you look back at last year's returns, the average was about $3,200. For people who bring it home and their returns, this year is going to be around like $2,000. So that's a significant difference."
He added the daycare credits have been cut in half as well, from an $8,000 maximum to $4,000. Plus, in years past, the government didn't tax the first $10,000 from unemployment or severance pay. That's now out the window.
But it's not all bad news.
"We actually do have a couple of breaks, tax breaks with the inflation right now. They have changed some tax laws that actually will help our taxpayers," he explained.
Before you file, here are some of the most important things to keep in mind to save you a headache down the road.
- File online instead of through the mail
- Double-check when you file
- Opt for direct deposit
- Wait for every tax document you'll need before you file
"I recommend heavily do not jump the gun. If you don't have all your documentation, you want to make sure you have it because you can be caught in that backlog, that 10 million return backlog as well."
The deadline to file is April 18, three days later than normal.
Taxpayers that need to file an extension will have until October 16.
