The Internal Revenue Service – IRS- has recently warned taxpayers about the stimulus cheques. Despite the fact that some may have already heard about it, there are still many taxpayers who are unaware of the recent news. It was last January 23, 2023, when the new tax-filing season started. So, it is time to pay the taxes you owe from the tax year 2022.
Do not forget that the deadline is April 18, 2023. By then you should have paid all the taxes you owed the IRS and filed your tax return. It will depend on the income you earned and your personal situation whether you will get a tax refund or not. There are many taxpayers who are looking forward to getting their direct deposit after filing electronically.
The IRS warns about the negative impact the lack of stimulus cheques may have on your refund
After the previous tax refund which was much higher than usual, the IRS is worried that many Americans are expecting to get as much money as that. Federal Stimulus cheques are over, therefore, there will be no extra money on their refunds. It is true that some states may be sending some stimulus cheques, but it is not the case for most people.
A smaller tax refund could be disappointing but it could also damage people’s finances if they really expected that money. It is high time to save money if you did not know you could get a smaller tax refund in 2023. Getting ready beforehand is the best way to overcome difficulties.
These are the two main reasons for a smaller tax refund
For many people, there will be no Advance Child Tax Credit due to the fact that they eliminated it. Besides, the Recovery Rebate Credit is over too. These tax law changes will definitely decrease the amount of the taxpayers’ refunds in 2023 according to the IRS. Thousands of extra dollars were received by Americans. It benefited millions of taxpayers but it could be a blow to get a small refund in 2023.
Not to mention that there might be other Americans that will have to pay taxes and will not get a refund. Cheques worth 1,400 dollars for the Recovery Rebate Credit, or the Child Tax Credit increased to $3,600 if you had an under 6 child, will be missed. If you still think there is a mistake in your tax refund you can always contact the IRS.