Tax refunds were much higher on average in 2022. According to the Internal Revenue Service or IRS, it was a bit less than 3,040 dollars. Having this increase from the previous year was a great boost for American families’ finances. It was a 7.5 percent increase, which is quite a lot taking into account the number of taxpayers that there are in the USA.
Not having the tax credits that were available in the previous tax refund, will be a meaningful impact on these payments. Therefore, most taxpayers will certainly get less money than what they had previously received. So, perhaps, your tax refund may be closer in quantity to the figures before the pandemic. As the new tax season has just started, taxpayers will find out soon.
When is the deadline to file your tax return?
It was on January 23 when the filing season took off and it will be finishing by April 18, which is the Tax Day deadline to file. Tax preparers advise people to get ready in order to plan their financial situation. It is not the same to get a big tax refund as having to pay because you owe taxes to the IRS. The government made it possible to get higher income tax credits.
Take for example the tax credit for dependent care, or for children. Besides, there were charitable deductions that taxpayers could benefit from too. It is true that once you get a higher check or a higher tax refund, it is a letdown to get a lower one. Thus, it is essential to manage your budget in order to cope with the current economic situation.
Why are IRS tax refunds so important?
According to a recent survey carried out by Qualtrics on behalf of Credit Karma, up to 30 percent of the American population admit they rely on this money to get by. The younger the age group is the more difficult to make ends meet without this tax refund. Up to 40 percent of Gen Z rely on that money, while 46 percent of millennials say the same.
There is an important number of taxpayers who need this money to pay for things that are not a mere desire. They do need the tax refund to be able to afford some necessities. They are about 24 percent in total, those who really need the money to pay for things they must.