"Projected 2023 return"

[bristalvictories5]

After I completed my 2022 return, the system advised me what my potential 2023 return would look like. The biggest question to the "projection" for what 2023 return will look like is I have two children (will be fully qualified for the child-tax credit in 2023)...does this projection include the child tax credits as well? It does show the option of manually selecting different life events and one of the life events is "new child/dependent" and when I manually update that category to include my children, the projected 2023 return is identical now to 2022 tax return I just completed. There are no "hints" or anything to clarify what the projected figures in but since when I added them manually under the "new child-dependent" (even though they aren't "new children", and the figures align with this years return, should I feel safe to assume I needed to add that in and what the system originally generated is pre "credits" (child-tax credits)? Feedback to Turbotax- You should make it clear what is (and is not) included in the projection for what 2023 return will look like (does it include any of the tax credits such as child tax credits that were included in the current years tax filing, etc). Thank you all for your help!

[LindaS5247]

The IRS made some changes to tax credits for the 2022 tax year.

Namely, some tax credits return to 2019 levels. This means that affected taxpayers will likely receive a significantly smaller refund compared with the previous tax year. Changes include amounts for the Child Tax Credit (CTC), Earned Income Tax Credit (EITC) and Child and Dependent Care Credit.

• Those who got $3,600 per dependent in 2021 for the CTC will, if eligible, get $2,000 for the 2022 tax year.
• For the EITC, eligible taxpayers with no children who received roughly $1,500 in 2021 will now get $500 in 2022.
• The Child and Dependent Care Credit returns to a maximum of $2,100 in 2022 instead of $8,000 in 2021.

Here are some links that explain these changes in more detail:

https://www.irs.gov/newsroom/get-ready-for-taxes-whats-new-and-what-to-consider-when-filing-in-2023

https://blog.turbotax.intuit.com/life/tax-benefits-changing

If your 2022 Child Tax Credit is less than your 2021 credit, it's probably because one or more children celebrated their 17th birthday in 2022.

Other, less common reasons your 2022 Child Tax Credit is less than your 2021 credit include:

• One or more children lived with you for less than half the year in 2022 but lived with you for half the year (or more) in 2021
• One or more children paid more than half of their own expenses in 2022, but didn't in 2021
• Your 2022 AGI increased to $400,000 or more (joint filers and surviving spouses) or $200,000 or more (single, Head of Household, or separate filers)

See the qualifications for the Child Tax Credit and the Credit for Other Dependents.

[bristalvictories5]

Hello. I appreciate the response but that is not what my concern was at all. I want to know if the “projected refund” for 2023 that appears when you complete the filing for 2022 includes tax credits such as the child tax credits or if that has to be manually entered. This is something designed by TurboTax specifically so someone who is familiar with the current TurboTax filing and understands what I’m referring too I’d truly appreciate the response. 

[DianeW777]

You can rely on the estimate since it is based on your current return and circumstances. The projected refund that TurboTax displays as a potential for 2023 is based on the income, deductions, dependents and credits that you are eligible for in 2022.  There would also be a component for those changes that are already known such as the tax rates for 2023.  

This doesn't mean that it's an exact amount simply because there can be any changes that are not anticipated at this time.  Keep in mind that your situation could change such as a child no longer qualifying as your dependent.  Age would be factored in based on 2022 tax return data.

These are some pieces of information that may help answer your question.

[bristalvictories5]

I appreciate your response but I am still 100% baffled. Where is it in writing that indicates tax credits are included in the “projected 2023 return” once you file 2022? Why is it that when I plug in my dependent info manually it drastically changes the figures to match identically what my 2022 return is? Also, the return I am

getting for 2022 is DRASTICALLY different from 

what it is projecting from 2022 to 2023 even though my children’s ages are nowhere near the cut off either. Please provide clarity how there is such a drastic change between 2022 and “projected” 2023 when there are ZERO changes!! @DianeW777 @LindaS5247 

[LindaS5247]

If your return is completely entered in Turbo Tax (and all of your information correctly entered) your tax credits should be figured by the program.

I suggest you try calling and taking to a Live Tax Expert.  They may be able to see your screen and answer your question more specifically.

Click here for instructions on how to connect with Turbo Tax Live.

[lucy0077]

On your website, my projection for 2023 shows about $2,900 due.  Does that mean due to me or to IRS?  I've always received a refund (this year it was $3,000) so can I assume they mean it's a refund and not a balance due to IRS?

[RobertB4444]

If it shows a negative amount due then that is due to the IRS, not you.  But the refund tracker will not be accurate until you have entered all of your information.  Finish entering all of your information and then see what the amount shows.

@lucy0077 

[nick112207]

@bristalvictories5 @lucy0077 No, you apparently CAN NOT rely on that estimator that's supposedly based on 2022 info. Mine showed only getting $65 next year, vs $4,000+ normally.

I looked and it didn't include my dependents in the estimate. All 3 under 14 so not even like they age out next year. Added them and brought the estimate back to what I'd expect.

[jmheverling]

I've just had my 2022 eFile accepted by the IRS. I would like to do a projected 2023 return because I have some changing items in terms of the taxability of my retirement income....how do I prepare an estimate?

[ErnieS0]

Here’s how to do a 2023 tax project to see how much you will owe or get back.

1. Type W-4 in Search (magnifying glass) in the top left corner
2. Tap Jump to w-4
3. On “Adjust How Much Tax You Pay,” tap NO
4. On “Review Your Estimates?” tap Review Now
5. Fill in your 2023 estimates on the following screens.

@jmheverling