Americans can claim up to $15,775 from the IRS this month thanks to major policy changes – here’s how

AMERICANS will soon be able to file their tax returns – and you might be set for a higher refund this year thanks to major policy changes.

While the Internal Revenue Service (IRS) saidAmericans can start filing a tax return as soon as January 24, the Treasury Department is warning that more delays could happen in 2022.

This is because of the ongoing coronavirus pandemic and an underfunded IRS.

Nevertheless, Americans will want to get ready to file and look out for documents including their W-2 forms and two letters about stimulus and child tax credit payments. 

Americans can expect those key documents to arrive this month. 

Big new policies signed into law means some Americans could be getting a larger tax refund this year.

We unveil the maximum that you might be able to claim on your tax return this year.  

General tax refund – $2,775

Assuming you overpaid in taxes in 2021 – you’ll get some sort of return in 2022.

How much you get back on your return will depend on a few factors including your income and deductions.

In 2021, Americans received on average $2,775 in tax refunds, an 11% increase from the previous year, according to the IRS.

Also, wages went up in 2021 – meaning Americans can be in line for a larger refund this year.

Child tax credit – up to $3,600

One provision under the $1.9trillion American Rescue Act, signed into law by President Joe Biden in March, temporarily boosted child tax credit payments to $3,600.

To qualify for the full payments, couples need to make less than $150,000 and single parents who file as heads of households need to make under $112,500.

While the expanded child tax credit has expired, tens of millions of eligible families received up to $300 per child in monthly payments from July to December – giving them as much as $1,800.

As a result, families who received all those payments will be able to claim the remaining $1,800 on their tax return.

However, if you were eligible and did not receive them, you’ll be able to claim the full $3,600 on your tax return.

Reasons why may not have received a monthly child tax credit payment is because you were a non-filer who failed to sign in time or mistakenly opted out over fears you could owe the IRS money due to a filing or income change.  

Child care and dependent credit – up to $8,000

Another provision that was expanded under the Rescue Act was the child and dependent care tax credits.

Firstly, keep in mind that these aren’t paid out in monthly installments, unlike the child tax credit payments.

The care credits aim to help working families offset expenses when financially providing for a child.

Specifics that count as qualifying expenses include, transportation, housekeepers, babysitters, before and after school programs, as well as day camps and daycare.

Moreover, they can be used to care for dependents with disabilities.

The new law allows families to claim up to 50% of qualifying expenses.

You can claim the maximum expense rate as long as adjusted gross income (AGI) is $125,000 or less. 

Once that threshold exceeds that number, the credit percentage rate starts to phase out from 50%.

Specifically, families with more than one kid who spend $16,000 in qualifying expenses will be able to claim care credits of up to $8,000. 

Claimants with one child can receive credits of up to $4,000 in expenses.

In most cases, care credits are available to parents with children under 13.

However, there might be some exceptions for dependents who cannot care for themselves.

Stimulus check – up to $1,400

And lastly, millions of Americans are still owed $1,400 stimulus payments under the Rescue Act.

This includes a couple of reasons:

• If your family had a child in 2021
• If you’re living abroad

Just thousands of Americans living overseas have received stimulus checks during the pandemic, according to CNBC.

According to the Department of State, roughly 9million US citizens live outside the country. 

Single filers who make up to $75,000, and couples earning up to $150,000 qualify for the latest round of federal stimulus.

Past those thresholds, the $1,400 check starts to phase out and it's then capped out at $80,000 and $160,000 respectively.

Here are three scenarios when you might get a fourth federal stimulus payment in 2022.

See what states and cities are offering universal basic income.

Plus, see when your W-2 forms will be available in 2022.