At the beginning of the tax season, the IRS said many filers should expect smaller refunds.

Sure enough, as of the third week in February, the average refund was down 11 percent to $3,140.

The 2021 tax year was unique because many one-time refundable credits were available as the government tried to aid struggling families during the pandemic. For instance, there were higher payments for the child tax credit.

Those higher tax breaks didn’t carry over to the 2022 tax year.

The American Rescue Plan expanded the child tax credit for the 2021 tax year to $3,600 for children 5 and younger, and $3,000 for those 6 through 17. This credit, which helped lift families out of poverty, returned to the pre-pandemic maximum of $2,000 per child under 17.

Leave a Reply

Your email address will not be published. Required fields are marked *