The past few years, refunds for tax season have been at an all time high. This year’s filing will look a little different due to some changes in the finance world.
1. No stimulus payments for 2022
There were no stimulus payments issued this year. In previous years, eligible Americans could claim unpaid funds on their tax return, giving them a larger sum. Ther average amount for people claimed last year was a little over $3,000. Which is upwards to around 14% increase in previous years.
2. Difficulty increased for claiming charitable donations
Previous years had a tax incentive for cash gifts and lawmakers extended the tax break for the last filing year. The tax break is no longer extended for this year so there is no longer any incentives.
The IRS made a statement for Americans to not rely on a tax refund for 2022 by a specific date and some filings may need further review and delayed. The best way to get your refund as quickly as possible is to file electronically and have funds direct deposited into the bank.
For more on this topic, visit this link, to CNBC’s article “Tax ‘refunds may be smaller in 2023,’ warns IRS. Here’s why”.
