Background and context

The U.S. tax code is updated continuously through Congress, IRS guidance, and annual inflation adjustments. For individual taxpayers, the most consequential updates in recent years include the reversion of temporary pandemic-era credits, inflation-indexed changes to deductions and tax brackets, and new or expanded clean-energy and electric vehicle credits established by the Inflation Reduction Act (IRA). For authoritative guidance, see the IRS pages on the Child Tax Credit, the Earned Income Tax Credit, and energy-related credits (irs.gov).

Key changes to check this filing season

  • Child Tax Credit (CTC): The temporary expansion to the CTC created by the American Rescue Plan (2021) was not made permanent. For recent filing seasons the refundable portion and maximum amounts returned to pre‑pandemic levels, changing refund expectations for many families (IRS: Child Tax Credit). FinHelp resource: “Child Tax Credit Explained” (https://finhelp.io/glossary/child-tax-credit-explained/).

  • Standard deduction and bracket indexing: Annual inflation adjustments change standard deduction amounts and tax-bracket thresholds. These automatic updates can move taxpayers into different tax outcomes without any change in income or behavior (IRS: Standard Deduction).

  • Earned Income Tax Credit (EITC): The EITC’s phase‑in and phase‑out thresholds and maximum credit are adjusted for inflation and sometimes for legislative change. Low- and moderate-income workers should confirm eligibility each year (IRS: EITC).

  • Energy and clean-vehicle credits: The IRA (2022) expanded and modified tax incentives for residential clean-energy improvements and clean vehicle purchases. Qualification rules, income limits, and point-of-sale vs. credit timing can affect whether you claim a credit this year (IRS: Energy Credits, Clean Vehicle Credit).

  • Reporting requirements and information returns: Changes to reporting rules (third‑party payment network reporting, brokerage reporting, employer reporting, etc.) can affect what forms you receive (e.g., 1099 series) and when you need to report income. Confirm all 1099, W‑2, and Form 1099‑K notices you receive and reconcile them to your records.

Real-world examples

  • A single parent who saw larger pandemic-era CTC payments in 2021 may find their 2023 refund smaller because the maximum refundable amount reverted and advance payments are not recurring.

  • A homeowner who installed qualifying residential solar or heat-pump equipment after IRA rules took effect may claim a tax credit this season, reducing tax liability or increasing a refund (subject to credit rules and documentation).

Who is most affected

  • Families with children (CTC and childcare-related credits)
  • Low- to moderate-income workers (EITC)
  • Homeowners and car buyers considering or claiming clean‑energy or clean‑vehicle credits
  • Gig workers and marketplace sellers who receive third‑party payment statements

Professional tips and strategies

  1. Gather and reconcile documentation early: W‑2s, 1099s (including 1099‑K), receipts for energy improvements, and child-care statements.
  2. Recalculate whether to itemize: Inflation indexing increases the standard deduction each year; many taxpayers who previously itemized may now be better off taking the standard deduction.
  3. Use the IRS tools and worksheets: The IRS provides interactive tools and updated instructions for credits like the EITC and Child Tax Credit (irs.gov).
  4. Seek professional review for complex situations: Modifications to clean-vehicle rules, income phase-outs, or changes in filing status benefit from a tax pro’s review. In my practice, early review often avoids surprises from advance CTC overpayments or misreported 1099 income.

Common mistakes to avoid

  • Assuming last year’s outcome repeats: Credits and phase‑outs change—confirm the current year’s rules before filing.
  • Missing state differences: State tax law may not mirror federal changes; check your state treasury or department of revenue.
  • Failing to reconcile third‑party reports: Unreconciled 1099‑K or 1099‑NEC amounts prompt IRS notices and delays.

Frequently asked questions (short answers)

Q: How will these changes affect my refund?
A: It depends—credits that were expanded temporarily (like the ARPA CTC) have often reduced, and inflation adjustments to deductions can raise or lower taxable income. Recalculate using current-year figures.

Q: Where can I find official details?
A: IRS topic pages for each credit and the annual instructions for Form 1040 are the primary sources (irs.gov). For example: Child Tax Credit, Earned Income Tax Credit, Energy Credits.

Interlinks (useful FinHelp articles)

Professional disclaimer

This article is educational and not personalized tax advice. Tax situations vary—consult a licensed CPA, EA, or tax attorney for advice tailored to your circumstances.

Authoritative sources

Notes on accuracy

This entry reflects federal developments and IRS guidance available through 2025. State rules and future legislation may change applicability—review the IRS and your state tax authority for updates.