Put Your Tax Refund To Good Use In 2023: File Electronically And Choose Direct Deposit For an Early Refund

Tax Refund

For millions of Americans, the tax season is more a period of hope and excitement than one of apprehension. It is the time of year when they receive the biggest check in the form of a tax refund if they are in the low and moderate-income category. While the average tax refund check amount varies every year, the 2022 tax year check payable this year will be smaller that the one in 2022.

Multiple factors determine how much one receives as a tax refund. But it has mostly to do with how much taxes the taxpayer has paid if their income is taxable, and also if they are eligible for the various federal support schemes including the Child Tax Credit and the Earned Income Tax Credit.

The tax refund goes out only after the taxpayers file their return for the year, in this case, the return for 2022. And the earlier you move and file your returns, the sooner you will receive your tax refund check. Read on if you want your refund payment to come in earlier and wish to know the details including the amount and your tax refund history.

Getting The Details Of Your Tax Refund Amount

Naturally, Americans with low and moderate incomes are eager to get their hands on tax refund payments. The check normally represents the biggest payment for many Americans. And despite the average drop of around 11% in the tax refund amount as compared to last year, it is still considerable. IRS data reveals that the average tax refund payment amount stands at $2,972.

The main task for the taxpayer is to ensure that their paper is in order and they do not miss out on any detail. Filing wrong details can lead to the tax refund payment getting held up and worse can also attract fines and penalties.

Tax experts advise filers to go for electronic tax returns as paper returns will need to be manually processed by officials at the IRS instead of being scanned electronically by a computer. This can lead to a delay of weeks and even months to the delay in getting your payment.

You also need to be careful about errors before filing your income tax returns. even simple arithmetic problems could cause your return to get delayed. And do not fall for websites that promise you accurate dates for your returns. the IRS doesn’t release any such data. Taxpayers can only know the average time that it is taking the IRS this season. For electronic filing, it takes around 3 weeks for your tax refund check to be credited to your bank account. But you need to have given your bank details to the IRS.

The IRS Doesn’t Entertain Calls For Tax Refund Date

It is wrong to assume that the IRS customer service desk will give you reliable information about your tax refund payments. The same goes for tax prep agents. Instead, you should refer to the Where’s My Refund on the IRS official website (irs.gov).

You will need to enter the tax year, your Social Security Number, your filing status, and also the refund amount as entered in your tax return. The present tax year is 2022. You can also log into IRS2Go.app. you can also call the automated hotline number (800-829-1954). But the information that you get here is the same that you will get on the official websites.

Calling up the agency and contacting an operator would be a futile exercise unless you are advised to do so by the “Where’s My Refund?” site.

The IRS has said that filers should not be alarmed if the site does not display the deposit date for their tax refund payments. Both the “Where’s My Refund” site and the mobile app, IRS2Go are updated only once each day. And this updating takes place only overnight.

At times tax refunds are delayed as the IRS needs extra time to process your returns and the average period of three weeks should not be taken as any official tax refund date by any taxpayer.

Why is my tax refund amount lower?

At times taxpayers find that their tax refund check is less than they had calculated. This is because the IRS adjusts money owed by the taxpayers. And these debts are not limited to the IRS. Even other financial obligations might be adjusted y the IRS against your tax refunds.

The agency sends a letter explaining the changes in the refund amount. Filers may at times also receive mail from the BFS under the treasury departments. The Bureau of Fiscal Service letter is attached when the refund amount is reduced to adjust against financial obligations other than income tax.

The IRS has stressed that filers should rely on the two mentioned websites if their refund amount is less than the figure they expected. They should also wait for a letter from the IRS or the BFS.

The Tax Refund Payments Are Not An Annual Affair As Circumstance Might Change

Your withholding may change year-to-year. even if you have received a tax refund this year, the IRS has said that change either the amount of the refund or even stop you from getting a refund next year.

Events that influence your tax refund include a change in marital status, having children, or changes in your income. Other issues like a second income from a gig or getting a raise can also influence your tax obligation and also the amount you get in your tax refund.

The IRS has advised that taxpayers should refer to the Tax Withholding Estimator to know if any taxpayer should go for a change in their withholding.

Filers have until April 18, 2023, to file their income tax returns. the average refund of 2023 can be known only later than that. The IS has stressed that taxpayers should l go for electronic filing and choose direct deposit for the refund payments if they wish to receive their checks as quickly as possible.

There is good tax software on the market that makes it easier for filers to go for fast and accurate returns. it also helps filers get their refunds faster as a result.