In a nutshell?  Expiring provisions of the tax code.

So many individual tax clients are disappointed this year that their refunds are much lower than last year.  But, that’s because, for example, the Earned Income Tax Credit is less lucrative this year than last.  (Yes, I know the IRS just highlighted it last Friday- but they did so  without once mentioning its value was deceased.)

Single taxpayers earning $ 53057 or less ($59187 if married) can still obtain the REFUNDABLE earned income credit.  (Refundable means you had to have paid taxes to get the credit; no more than the amount of taxes paid will be returned, regardless of the maximum value of the credit.)

And, the EITC come with lower bucks than last year-  $ 560 for dependent-less taxpayers (AND an adjusted gross income of $16480 ($ 22610 married) – who range between 25 y of age up to 64.  (MFS folks have special requirements to earn that EITC.)

And, this year, folks without qualifying children have a much harder time getting the EITC.  (And, last year the EITC in that case was $ 1502; as stated above, it’s only $ 560 this year.)  Moreover, last year, one could pick a prior year’s income to earn that EITC.  That provision no longer exists, either.

The new regulations also made it harder for those not filing jointly to get that EITC. (Of course, those without valid Social Security numbers are simply frozen out from obtaining the credit.)

The EITC is for workers whose income does not exceed the following limits in 2022:  (Plus any investment income cannot exceed $ 10300.)

The other credit folks were  counting on ot pad their tax refunds was  the Additional Child Tax Credit (ACTC).  The ACTC is gone- now, it’s just the Child tax Credit (CTC).   You should also know that neither the CTC  nor the EITC refunds won’t be processed before mid-February.  (You do remember the 2015 PATH Act, right? To ensure the IRS could verify everyone’s eligibility, the IRS was given more time to verify various facts.  So, the refund gets delayed.)

Don’t forget, though, the IRS has special rules for those in the military (combat pay or housing allowance or stationed outside the US are further impediments) , members of the clergy (housing allowance or rental value of home if provided by your denomination and income earned as a minister count against the EITC), and taxpayers/relatives with disabilities. (disability payments impede the granting of the EITC.)

Sorry, folks.  If want those refunds back- write to your Congressperson and/or Senators!

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