Three Big Changes That May Affect Your 2023 Finances – What To Do?
In the year 2023, millions of Americans will have to revise their budget as the changes affect public assistance programs and more. Cause of the pandemic, people are still feeling the economic impact, and numerous changes are looming.
Bringing in maximum payments and emergency quotas as several pandemic-era programs are coming-to-an-end. According to a published post by The US Sun, next year’s tax rebates are also expected to decrease, but it’s not all troubling news. Some individuals receive much-needed help, while others expand to reach more people. To be prepared, here are what’s changing in 2023
MILLIONS of Americans will have to adjust their budgets this year as changes hit public assistance programs and more. (Photo: The US Sun)
1. Reduction of Child Tax Credits
In 2021, under the American Rescue Act, the CTC was tentatively increased to a limit of $3,600. Each child’s enhanced child tax credit under the age of 6 was worth $3,600. $3,000 for children aged 6-17 and $500 for college students up to the age of 24. But, as a result of failing to expand the boosted Tax Credit, and will revert up to $2,000. This will be reflected when you file your 2022 tax returns.
2. Smaller Tax Returns
When pandemic-era benefits pass, so does the extra money that comes with it. The IRS reported tentative measures like federal stimulus checks and expansion of the CTC program have raised the standard return by nearly 14%-$3,253 between 2021 and 2022. CBS News reported that, when taxpayers file their 2022 tax returns next year, the average returns are expected to be only about $2,700.
3. Wins & Losses COLA
This year, the Annual Cost of Living Adjustment (COLA) is 8.7%, which affects Social Security, Social Security Disability Insurance (SSDI), and Supplementary Security Income (SSI) beneficiaries. SSI recipients raise their monthly fees by up to $73 per month.
Those who apply for Social Security get $144.10 more a month. According to the Louisiana Department of Child and Family Services reports that 145,330 households rely on the Supplemental Nutritional Assistance Program (SNAP) will see about $50 a month, or $600 a year.
If needed additional financial assistance, please see our list of cities and states nationwide that offer monthly payments through the Universal Basic Income Program. And see the 12 states that offer child tax credits up to $1,000.
