What are federal credits?

[chelseatberry]

My federal credit was much larger last year, and I don't know why.

[xmasbaby0]

There are quite a few possible federal credits.....we do not know which credit you are referring to.  However, there have been some significant tax law changes for 2022 and some of those credits are reduced for 2022.  The child tax credit and the childcare credits are reduced; the earned income tax credit rules changed, etc. etc. etc.  We can be more helpful if we know what credits you received for 2021.   Or....compare your 2021 and 2022 returns side by side to see what is different.

[JohnB5677]

Some tax credits have 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.

Visit Credits and Deductions for more details.

[xmasbaby0]

Oh...and last year you might have received the recovery rebate credit of $1400 per person.  There is no such credit for 2022.