Get Ready for Tax Refund Season in Eau Claire!
As the end of the year nears, one of the things to start thinking about is the upcoming tax season. It’s good to start preparing for tax return(s) early. That way, you know if you have to pay additional taxes or you will be getting a refund. You may have a plan for your refund such as downpayment for a house, big purchases like car; investing; or simply saving. It’s good to get it early. In this article, we explore some tax changes for 2022 and refund timeline.
Changes to the 2022 Tax Rate
There are several more benefits in regards to tax breaks. The standard deduction for single, married, or heads of households have increased from 2021 by $400, $800, and $600 respectively. The Alternative Minimum Tax exemption also increased from 2021 to 2022. In 2021, the exemption amount was $73,600 for single filers and $114,600 for married filers filing jointly. In 2022, it increased to $75,900 for single filers and $118,100 for married filers filing jointly. The Earned Income Tax Credit for qualifying taxpayers who have three or more qualified children increased by $207 from 2021. There are several other credits and exclusions that have increased including the maximum credit for adoptions, annual exclusions for gifts, foreign earned income exclusions, the qualified transportation fringe benefit, and others. There are several tax refund calculators online that can help taxpayers determine which credits they qualify for and an estimate of their tax refund.
2022 Tax Refund Timeline
One important question that everyone has is when do I file my taxes and when should I expect my refund. The IRS usually starts accepting tax returns during the last week of January, but this could be pushed back by a week or two if major new tax legislation is passed by the end of 2022. The tax deadline is April 18, 2023. When you receive the tax refund depends on when you file and what tax credits you are eligible for. Most Americans who receive their refunds by direct deposit can receive it in as little as two weeks. However, the IRS delays processing by two to three weeks if the income tax return has the Earned Income Tax Credit (EITC) or Child Tax Credit (CTC) so that they can verify the credits.
Using Tax Refund as Down Payment for a Home in Eau Claire
There is an opportunity to get a tax refund and use it towards a large purchase that you have been wanting for a while, such as a new home. In fact, many of our homeowners have used their refunds as down payment for homes in our communities! Starting off the New Year in a new home is a perfect way to start your year. In particular, living in the Hillcrest or Villa Diann communities within Eau Claire have wonderful homes to offer. Check out available homes and available floorplan.
Sources:
https://www.irs.gov/newsroom/irs-provides-tax-inflation-adjustments-for-tax-year-2022
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