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The programs that helped families survive the pandemic no longer exist.

It’s been just four days since the IRS began accepting tax returns for 2022 income. They have already warned that Americans may be surprised to see small refund checks being credited to their bank accounts.

There are four main reasons for this.

1. Stimulus check is gone

On March 12, 2021, the IRS began paying out the final of three stimulus packages. However, for various reasons, many taxpayers did not receive their payments. And some of those who got them received checks for the wrong amount.

These people will be able to submit a recovery rebate credit when they file their 2021 tax returns. If they had to get a refund, the IRS set aside $1,400 (or the missing amount if they had previously received a partial check) for each eligible payee in addition to the refund. of dollars will help offset outstanding amounts if they owe government money.

Let’s say a family of four moved and missed out on a $1,400 stimulus check entirely because the IRS needed their current addresses. They were able to submit a recovery rebate credit, allowing him to receive $5,600 in addition to his regular refund.

With no stimulus or recovery rebate credits, we’re back to our normal payout amount.

2. End of Enhanced Child Tax Credit

Another program aimed at helping families cope with the economic impact of the pandemic was the Enhanced Child Tax Credit. In a normal tax year, a parent can deduct her $2,000 for each child as a child tax credit. It’s not a lot, but it’s meant to help with the high cost of raising a child.

During the pandemic, that amount increased from $2,000 to $3,600 per child under 6. Also, he was raised to $3,000 for children aged 6 to her 17. Parents had two options for her. You can either claim the full credit on your tax return, or from July 2021 she will prepay the first half of the credit that will be distributed as monthly payments through December. I was then entitled to claim the other half of the credit. when they filed their taxes.

President Biden originally wanted to extend the child tax credit through 2025, but Republican lawmakers voted against it, ending the program with a December 2021 payment.

Imagine a family with children ages 5 and 7 who choose to claim a full deduction when paying their taxes. That means she received an additional $6,600 when she filed her taxes in 2022 for the 2021 tax year.

The good news is that the same family is considering $4,000 in credit this year. Still, it may seem small compared to $6,600.

3. Pandemic-era charitable tax cuts are a thing of the past

Generally, Americans can deduct charitable donations from taxes only if they have enough deductions to itemize them. Many Americans do not have enough deductions to itemize, or rather skip the work of going into itemization and insist on standard deductions.

When Americans filed their taxes last year, it was for the 2021 tax year. Congress has created temporary tax incentives for those who donated in 2021 but didn’t itemize their taxes. Instead of claiming nothing, one taxpayer can claim her $300 deduction and a couple can claim her $600.

That tax cut is gone.

4. 2022 was a tumultuous year for investing

The stock market will crash in 2022, dropping enough to make some investors uneasy. Some of those same investors may be surprised to learn that they have more taxes on their investment income.

Here’s how it happened.

• An investor held a mutual fund directly (as opposed to a tax-free account).
• The market became very volatile and mutual funds had to sell more holdings than usual. This included profitable holdings.
• After the sale, the mutual fund distributed the profits to the investors.
• Investors’ overall portfolios appear to have suffered losses in 2022, but there have been small pockets of gains. That’s the profit they’ll have to pay taxes or offset with the losing stock they sold last year.

The IRS has not yet disclosed how much less it expects to be refunded this year, but the average refund for the 2020 tax year was $2,827 and the average refund for 2021 was $3,039. It’s safe to say that the IRS expects average returns to be lower than that.

Bad news for many of us, but knowing ahead of time can help you plan a more realistic refund.