It's never anything but good news at tax time, right?
I don't necessarily dread tax season when it comes around. Other than the amount of tracking down paperwork that comes along with it. As an independent musician, I claim all the money I make doing that, so I need someone to do it for me. I can't even begin to calculate what I need to take out on my own. My math skills are pretty basic. As is my understanding of how to not get thrown in jail for screwing up my taxes.
But I know this time of year, a lot of families begin making plans for their inevitable tax refund. I know folks with kids often get decent money back. I know folks who overpay every year to try and bulk up their annual refund. Me? I just hand it all over, pay what my guy tells me, and move on.
A lot of families depend on their refund to get caught up.
I know there are definitely people out there who kind of depend on their refund, to get caught up on overdue bills and that kind of thing. Or they hope to use it for big purchases they couldn't make the rest of the year. It's a weird way to try and bank money, but that's cool.
But this year that may be tougher, according to News Center Maine. For one thing, a few tax rules that were set up during the pandemic, changed back to their previous status. For instance, the expanded child tax credit is going back down. Earned income credit will also go back down, as well as the childcare credit.
When all is said and done, the average return could see as much as an 11% dip from the last couple years. For some households, that could be a big wad of cash. But, these changes are simply putting things back the way they were, not changing to anything new. But still... folks will be sad to see smaller refunds when that money hits.