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Tax Day 2023: A look at tax credit changes

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CHICAGO (NewsNation) — Doing taxes in 2023 will feel a lot as it did before the term “COVID-19” became a regular part of our lexicon. One important thing to note is that nearly all those extra benefits we saw during the pandemic have come to an end.

Those extra benefits are returning to pre-pandemic status, including the child tax credit which was a payment of about $8,000 in 2021.

The child tax credit will return to just $2,000 for children under 5 years old and $3,000 for children 6 years old and over. Parents are eligible for this credit if their adjusted gross income is less than $200,000 individually, and $400,000 jointly.

Step-parents are also able to claim their step-children, especially if they’ve contributed half in both financial support and living status.

Educators will actually see a bump in what they’re able to deduct this tax season. Teachers can claim up to $300 of out-of-pocket classroom expenses, which is up $50 from last year.

According to the IRS, those $50 increments will continue in order to keep up with inflation — so keep those receipts.

Those who drive their own car for work are also eligible for money back, receiving an extra four cents per mile. The standard mileage rate for business travel has been bumped to 62.5 cents per mile. Medical or moving expenses are 22 cents per mile and charitable travel remains at 14 cents per mile.

If Americans are unsure of what they can and can’t claim, the IRS has a full page of tax filing tips and a list of changes to credits and deductions on its website for reference. If people still have questions, they can speak with a tax professional.

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