The Internal Revenue Service is warning taxpayers not to expect as much money back in their tax refunds this year.
The average tax refund this year is expected to be about $2,750, down from $3,200 last year. The change is due to the expiration of several pandemic-era programs, mostly Child Tax Credit, Earned Income Tax Credit and Child and Dependent Care Credit, as well as deductions allowed for charitable contributions.
Cessation of those programs could result in “significantly smaller refunds,” the IRS said.
“Refunds may be smaller in 2023. Taxpayers will not receive an additional stimulus payment with a 2023 tax refund because there were no Economic Impact Payments for 2022. In addition, taxpayers who don’t itemize and take the standard deduction, won’t be able to deduct their charitable contributions,” the IRS said in a statement.
You can go here to see the specific changes.
Taxpayers who file electronically with no issues and choose direct can expect to receive their refunds within 21 days of the date they file. People who claim CTC or EITC can expect a longer wait due to IRS regulations regarding extra checks to prevent identity theft.
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