MOLINE, Ill. — Tax season has arrived, and you want to make sure you have everything you need in order before filing.
According to Amerfile president James Fromi, there are always hundreds, if not thousands of small changes made to the tax return each year. In 2023, though, there is one large change that could greatly affect your tax return amount.
Child tax credits will be dropping to $2,000 for each child under 16 years old, compared to $3,600 last year for children under six, and $3,000 for those aged 6 to 17.
"Getting what child is supposed to be on your tax return, making sure someone else isn't claiming your child, etc. is absolutely critical because the child tax credit still produces $2,000 for each dependent. Anybody over 17, a lot of people don't know, will still get you $500 for that person," Fromi said.
Experts say to expect smaller returns this year because of the expiration of the American Rescue Plan that was implemented during the COVID-19 pandemic. Fromi urges the importance of filing your taxes correctly and with a professional so you lessen the chance of being audited by the IRS.
"So instead of hitting the button right away to electronically file, whether it's us or whether you do it yourself, it's important to take a step back, make sure you have everything, otherwise you're going to be amending your tax return later."
If you do wind up owing money to the IRS and need some time to get the funds together, you can still file your taxes, but set your payment for the deadline of April 18th.