It is that time of year when Americans review their financial position and strive to improve them for the coming year. It is also the time to gather all tax documents before the tax filing deadline, which normally falls on April 15 each year. An added incentive for Americans to move quickly is that there could be a bigger tax refund this year.
Tax refunds in 2023 were comparatively smaller for millions, the IRS revealed. This was because tax filers did not receive the extra support of stimulus checks that they had been receiving since the pandemic in 2020. The absence of an Economic Impact Payment in 2022 meant that millions went without a stimulus check or a tax refund in 2023.
However, the income tax returns against 2023 could bring in handsome dividends this year. Inflation has been a deep cause for concern for the past couple of years for millions of middle-class households. However, the IRS has calculated to lessen the economic pain through various measures.
The IRS has raised the tax bracket by around 7.1%. And for those whose income has not kept pace with inflation, the return could be as high as 10%. But It remains to be seen if filers can get their tax refund as smoothly and quickly as possible.
Getting Your Tax Filing Done Earlier
Using a competent tax preparation service and tax filing your returns early helps. It is important to file early to stay ahead of the intense race for tax refunds that arise for filers at a later date. And filers who opt for an electronic fund transfer instead of a paper check will be sure to get their tax refunds earlier.
It is also important to avoid any errors or omissions as that could lead to a significant delay in tax refunds. Tax filing early also helps you avoid the chances of penalties. And for those who owe funds to the IRS also need to file early. This will help them be better prepared when the payment issue comes up.