LEXINGTON, Ky. (LEX 18) — Monday marks the first day in 2023 that people can file their taxes for the year.
It’s a year where some people will see a smaller tax return — a difference that will be especially important for people in lower income brackets, said Tiffany Williams, the CEO of Quality Tax in Lexington. It’s a group that makes up many of their clients during tax season.
“For the majority of our clients their tax refund is the biggest check they will get all year and so they may have relied on that to get caught up on rent to pay, that car payment, to school supplies,” Williams said.
The reason why they will see a smaller return is because the daycare credit, the child tax credit, and the earned income tax credit are all reverting back to pre-pandemic levels, said William’s 16-year-old daughter Ka’Dynne Williams, who also works at Quality Tax.
Those deductions were put in place to help people weather the pandemic. Now, a lot of families can expect to see reduced refunds, Williams said.
There are multiple other deductions people can get to make up for the loss, she said. You can talk to quality tax professionals, like those who work at Quality Tax, and some free options also exist online.
“You could be missing out on thousands of tax law savings by just not being educated on tax laws,” Williams said.
It’s important to also be wary of scammers who take advantage of people during tax season, Ka’Dynne Williams said. She said the IRS will not contact you through email, text, or social media. If you are contacted in those ways, you should alert the IRS, she said.
In addition, business owners should be especially careful to keep business and personal funds separate. “Small business need to really be on their toes because the IRS has hired 8,000 new agents,” Ka’Dynne said.
