Tax Refund 2022- What Are The Things That Can Affect It?

Stimulus Check Tax Refund
Stimulus Check Tax Refund

The tax code has always been quite a convoluted concept to deal with. And ever since the coronavirus, the entire process has become trickier over the last couple of years. So it is very difficult to grasp what could constitute a Tax Refund, and what are the possible scenarios which could affect such a payment in an era of stimulus check payments and other federal assistance given to people who had been suffering through the ravages of the coronavirus pandemic.

Now, there is a possibility that your student debt might have been forgiven by the federal government. But there is also a possibility that you could be seeing a definitive lack in stimulus payments this year. And both of these issues could affect your tax returns for this year. 

What Will Affect Your Tax Refund?

One of the many reasons why your tax refund might not be as much as you thought it to be is because of a lack of stimulus payments this year. If you have carefully noted, the stimulus payments coming in this year have been from the state governments, and that too in a select few states. The federal government has shifted its focus to other matters. Since stimulus checks weren’t taxable income, you were essentially given free money that wouldn’t put you in a higher tax bracket.

Another reason affecting tax refunds would be the change in tax brackets. Earlier, people in the lowest tax brackets had to pay a very minute sum. But Congress has increased the tax brackets so people have been shifted to a different bracket. While this doesn’t imply that you would be receiving a smaller refund, you could ideally expect some sort of a change.