Three major changes set to impact your finances in 2023 – and what to do about them

MILLIONS of Americans will have to adjust their budgets this year as changes hit public assistance programs and more.

People are still feeling the effects of the pandemic on their finances, and more changes are coming.

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Big changes are coming to financial assistance programs in 2023Credit: Getty

Several pandemic-era programs are set to end, taking maximum payments and emergency allotments with them.

Even tax refunds are expected to be smaller next year.

However, it’s not all bad news.

A few programs will be getting much-needed boosts, while others expand to offer help to more people.

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The US Sun has rounded up what’s changing in 2023 so you can be prepared.

1. Lower child tax credits

In 2021, the child tax credit (CTC) was temporarily increased to a maximum of $3,600 under the American Rescue Act.

The enhanced child tax credits were worth $3,600 per child under six, $3,000 for kids between six and 17 and $500 for college students up to the age of 24.

However, as a result of failing to extend the boosted tax credit, it’s on track to revert to $2,000 – which will be reflected when you file your 2022 tax return.

2. Smaller tax returns

As pandemic-era benefits expire, so will the extra cash that came with them.

Those temporary measures, like federal stimulus checks and the expanded CTC program, boosted the average return by nearly 14 percent to $3,253 between 2021 and 2022, the IRS reported.

Since so many Americans were able to claim these benefits on their taxes 2021 and in 2020, the returns were bigger than expected.

But when taxpayers file their 2022 tax returns next year, the average return is expected to be around just $2,700, CBS News reported.

3. Wins and losses from COLA

The annual cost-of-living-adjustment (COLA) for this year is 8.7 percent, which will affect beneficiaries of Social Security, Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI).

SSI recipients will see their monthly payment increase by a maximum of $73 per month.

Those who claim Social Security will see $144.10 more a month.

On the other hand, the boost is hurting thousands of Americans who rely on public assistance programs.

The Louisiana Department of Child and Family Services reported that 145,330 households that rely on the Supplemental Nutritional Assistance Program (SNAP) will see almost $50 less per month or $600 per year.

On top of that, another 1,414 SNAP households will be pushed over the income cap and have their cases closed.

If you think you’ll need some extra financial help, see a full list of cities and states across the country that are offering monthly payments through universal basic income programs.

Plus, see the 12 states that are offering as much as $1,000 in child tax credits.

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