IRS: refund check will be 11% less than the previous year

With this new tax season starting on January 23rd for filing tax returns for the 2022 tax year American taxpayers will receive 11% less refunds this yearor. To date, the IRS has sent out 8 million refund checks and the average is $1,963,000.

The agency has already announced that this year various tax incentives that were given during the pandemic will cease to exist, These include the Child Tax Credit, Earned Income Tax Credit, and Dependent Child Care Credit.

Thus, the amount of compensation is reduced compared to a year earlier, which amounted to almost 3300 thousand dollars, which is 16% more than in 2021. In addition, taxpayers are submitting their most anticipated reports for this season, according to Bank of America analysts, this is due to the fact that Americans want to receive their refunds earlier due to the economic situation in the country.

While the average is 160 million tax returns, according to the IRS, until last week, the agency had received 19 million applications. In other words, the majority of taxpayers did not file a return, despite the fact that the deadline is April 18, this will not eliminate the change in the average refund.

At the moment, refunds are faster than in past seasons, 9 out of 10 refunds are sent within 21 days of application, however the IRS has noted that refunds are not available on one specific date.

In the past days, the IRS also clarified that this year, for example, various loans will reduce their amounts; the tax deduction for children is no more than 2,000 thousand dollars. For a child and dependent care loan, the amount will be $3,000 for expenses per person or up to $6,000 for two or more. The Earned Income Tax Credit for people without children is $560.

Three free programs in the US will pay taxes in 2023

Finally, the IRS clarifies whether taxpayers who receive government benefits must pay taxes.