e filing

[TaxLaw]

My client filed 2021, received president recovery rebate plus refundable credit for 3 children.

Now 2022 filing EIC reduced and the new amount not updated for creditable tax payment?

I contacted Pro Series who told me the IRS changed the rules, only withholding allowed no longer EIC?

Huh???

Help for a workaround the associate showed me how to increase the withholding without EIC!

Thanks for your professional assistance!

Dr. Charles Hills, JD

[Just-Lisa-Now- · Accepted solution]

@TaxLaw  you seem to have added onto a post about a different issue, did you start your own thread concerning your clients situation?

2021 DID have some special rules for refundable credits. And that might have been the year that you could use a prior year earned income to compute certain credits (but it feels like a hundred years ago, so I cant remember for sure)

Im not sure I understand why youre comparing a 2021 return with stimulus refunds to a 22 return with EIC .  And please dont rely on customer support to give you tax advice, they are purely for technical support so this statement is worrisome.

"Help for a workaround the associate showed me how to increase the withholding without EIC"

You cant increase withholding with a workaround.  Withholding has been previously paid into IRS for the taxpayer. 

And EITC is still refundable, but the CTC may not be without having earned income anymore (again the Covid years they made lots of temporary changes to get extra money in taxpayer pockets). But that should have all been included in your CEs that you take each year. 

Follow the money on the return for each year, look at the worksheets for computing any credits, where do you see the problem?

[qbteachmt]

Here's an article link with a nice comparison table and some discussion for the comparison of the two tax years 2021 vs 2022.

https://www.taxoutreach.org/blog/why-is-my-tax-refund-smaller-this-year/

Here is IRS 2021, specifically:

https://www.irs.gov/newsroom/changes-to-the-earned-income-tax-credit-for-the-2022-filing-season

Here's the link for the interactive wizard for EITC:

https://www.irs.gov/credits-deductions/individuals/earned-income-tax-credit/use-the-eitc-assistant

Since you mention children, here's a nice article for CTC:

https://www.taxact.com/tax-information/2022-tax-changes

"received president recovery rebate"

Stimulus funds as economic impact payment. The president didn't provide this or fund this.