Millions of Americans suffered greatly for years from inflation, and it seemed as though there would never be any relief. Now that prices are falling, analysts say, people may finally exhale in relief, with many choosing to use their tax refunds to pay for necessary household expenses.
Nearly a third of those surveyed said they will rely substantially on their tax refund to carry them through the future year, which is why many taxpayers are counting on it. Recent figures from Credit Karma, based on a survey of more than 1,000 American consumers in early December, seem to support this theory.
“Nearly three-quarters of Americans are expecting a tax refund this year and for many it will be the most significant financial windfall of their year,” said Courtney Alev, consumer financial advocate at Credit Karma.
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Tax refunds are a much-needed perk for families who work hard. In 2022, 73% of taxpayers received an average payment of $3,176, a remarkable rise from the $2,800 amount from the year before. This additional support allows many households to make significant investments or build up some financial security during these trying times.
Many taxpayers are looking to their annual IRS returns this year as a much-needed financial lifeline, whether it is for saving for the future or purchasing basics as inflation continues to soar.
Getting your IRS refund soon? Make a move! The IRS advises using direct deposit as a payment method, filing returns electronically, and double-checking their accuracy and completeness before submitting them, all of which can speed up receipt. Now there’s a project worth your time!
Tom O’Saben, the National Association of Tax Professionals’ director of tax content and government relations, exhorts taxpayers to utilize all opportunities for an expedited return by filing electronically. He exhorts people to “do whatever they can” to get their taxes done as soon as possible!
O’Saben advises asking for direct deposit in order to expedite the process of receiving your refund, which could reduce the time it takes by up to 10 days.
A timely refund or an audit may depend on how well your tax return is prepared. Prior to sending, double-check your return for any last-minute issues because even the smallest mistakes could cause significant delays.
“One of the ways to make sure you get your refund as quickly as people is to make sure you have your ducks in a row,” O’Saben said. “Don’t ignore things the IRS catches very quickly.”
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Newlyweds should file their taxes with extra caution. Double-check to be sure everything matches up. They might have a new last name, but their Social Security number might not yet reflect the change.
“That’s a big one,” O’Saben said.
The IRS warned that refunds won’t be as strong in 2021 owing to the absence of stimulus payments from Washington, so Americans hoping to get a little extra money this year may be disappointed. Meanwhile, a lot of people were fortunate enough to gain last year: those who qualified could file their taxes and get up to $1,400 back from Uncle Sam!
“Refunds may be smaller in 2023,” the IRS said in a November news release about preparing for the upcoming tax season. “Taxpayers will not receive an additional stimulus payment with a 2023 tax refund because there were no economic impact payments for 2022.”‘
The IRS has issued warnings that refunds for claims for the earned income or additional child tax credits cannot be released before mid-February, so even though an earlier-than-usual tax return season is anticipated, anyone intending to claim these credits may have to wait longer than anticipated.
It’s tax season, and people all throughout the country are getting ready for their yearly April 18 due date, also known as Tax Day! Why not get this season off to a rousing start by getting started now, which will guarantee a seamless filing process?
