When i save encrypted file to iCloud and try to retrieve it i get Taxes-2022.tax2022.icloud has wrong tax year or some other issue that prevents us from opening it

Edit the file and remove from the file extension the .icloud

And only save the real tax file .tax2022 to your computer C or D drive.  You can save a copy or backup to the cloud but then first move it to your hard drive if you need to open the backup.