Some people procrastinate on their taxes and wait until the last minute to get them done. But if you’re anticipating a tax refund this year, you may be motivated to get your taxes done well ahead of the filing deadline. After all, the sooner you get your taxes done the sooner you can anticipate your refund landing in your bank account.
In 2022 the average refund amounted to $3,121 not a small number. And if you got a similar refund last year you may be anticipating a repeat payday this filing season. But you may find that your refund isn’t as robust in 2023 as it was a bad thing even though it might seem like one. But one thing has to be kept in fine Tax Refund is not free money.
Why Tax Refunds Could Be Lower This Year?
Several refund credits got a boost in 2021 that didn’t carry through to 2022. And per hand, the most notable of those was the child tax credit. In 2021 the child tax credit was worth up to $3,000 for children aged 6 to 17 and up to $3,600 for children under the age of 6. But that’s, not the only reason you may be looking at a lower tax refund this year. It could also be a combination of different factors a lack of a boosted Child Tax Credit and more income on your part.
A refund simply represents money you were entitled to earlier on buts didn’t collect. So if this year’s tax refund is smaller, it means you did a better job of collecting your money upfront, as you earned it. A smaller tax refund is not a bad thing, it can be hard t predict.