The IRS has cautioned taxpayers that the income tax refund for 2023 could be smaller in the absence of stimulus checks. The taxmen have also warned taxpayers that they should not rely on getting their income tax refund by an assured date.
With no federal stimulus checks in 2022, the refunds are about to get smaller, the IRS authorities have warned. And if you wish that your refunds to reach you earlier than normal, you should go in for an electronic filing as it will largely ensure a return devoid of errors, and also put in a request for your payment for direct bank transfer, the IRS has informed.
There are also some key changes expected to the credits and tax deductions for the 2022 tax year. many expanded remunerations that were part of the ARPA, the American Rescue Plan Act, will not be applicable this time around.
IRS Has Advised Filers To Be Aware Of Major Changes In the Absence Of Stimulus Checks And Increased Inflation
The refund for the tax year 2022 will be based on the taxable part of the income tax that is calculated by deducting items from the gross income. Further, the Revenue Department has warned filers not to depend much on receiving tax refunds within a date that matched their 2022-time schedule. This is especially true when they go in for major purchases based on the refunds.
To know the status of your refunds faster, the IRS has advised taxpayers to electronically file a return after carefully checking it for errors and request payments through direct transfer to bank accounts. Filers should also know which of the credits could get retired or reverted for filing. This could include changes to the expanded CTC stimulus check and the EITC (the Earned Income Tax Credit).
The 2022 and 2023 standard deductions are also higher following the decision by the IRS to raise them in keeping with the record-high inflation rate. Thus taxpayers can retain more dollars in the next tax filing.