2023 Tax Season
Many taxpayers will receive smaller refunds when they file their tax returns for tax year 2022, due to Congress not extending the tax breaks put in place during the height of the Covid-19 pandemic as part of its year-end budget bill, as stated by tax preparers. Some taxpayers who received refunds in recent years may now have a balance due. The amount of the refund will depend on the taxpayers' situation, including whether they adjusted the amount they asked their employer to withhold in taxes and whether they paid estimated taxes. The average individual tax refund last year was $3,176, up 14% from $2,791 in the 2021 tax season. The federal economic impact payments is one of the main reasons why taxpayers may see a decrease in their refunds this year. Most taxpayers received their 2021 stimulus checks automatically, but some got the money as a recovery rebate credit of $1,400 per person on their 2021 income tax return. For a family of four, that could have meant a $5,600 credit on ...

Comments
Post a Comment