Tax refunds are about to come for some taxpayers, while others have not filed yet. There might even be some people who have already collected it. Because it was on January 23 the first day to file.
So it was then that the Internal Revenue Service -IRS- began to accept tax returns from the 2022 tax year. Apparently, many workers have received much less money than in their previous tax refund.
According to the IRS, they had already received almost 19 Million tax returns by February 3, 2023, many more than in 2022. They have managed to pay 7,996,000 tax refunds by that date.
Why are this year’s tax refunds lower than the previous ones?
One of the reasons to have smaller tax refunds could be the fact that more people have opted for filing earlier this year. So, if you compared the figures, there is a 13.5 increase in the number of filers.
Apart from that, there are more people who have already received their tax refund, which could push figures up. This year there were 3,666.000 more refunds, so it is a significant difference that can cause changes.
As you may have guessed, people are filing faster because they need their tax money more urgently than they did last year. Thus, it is showing that their financial situation is not as good as it used to be.
What other reasons might there be for lower cheques?
The end of most stimulus cheques is going to reduce the amount of money taxpayers get from this year’s tax refund. Apart from stimulus cheques, there were also higher tax credits.
As these tax credits went back to normal, the amount people are going to collect will certainly drop a lot. Perhaps, it would be best not to compare this refund with last year’s, but with your average tax refund in the former years.
Remember that there are high payments to be made that were not in the previous IRS statistics report. So, it is still early to see how different these tax refunds are going to be. The average refund cheque is $1,963 so far. While, by February 4, 2022, it was $2,201 on average.