The child tax credit, for example, will return to its normal rate this year after a big boost for the 2021 tax year. Why will my refund be smaller in 2023?ĭuring the pandemic, there were several benefits that increased individual refunds. Your refund can be split into up to three separate accounts, including Individual Retirement Accounts. Step two: Make sure you’ve signed up for direct deposit, as the IRS says that can significantly speed up your refund. That gets the information into the IRS system a lot faster than paper filings. The best way to speed things along, says the IRS, is to e-file your taxes. What's the fastest way to receive my refund? The best place to track where things stand is with the Where's My Refund? tool, which updates the status of tax refunds daily. The IRS says more than 9 out of every 10 refunds are issued within three weeks of the day the return is filed. More than 168 million individual tax returns for the 2022 tax year are expected to be filed, with the vast majority of those coming before the traditional April tax deadline. But this year’s refunds will be smaller as some benefits have lapsed. The average tax refund in 2022 (for the 2021 tax year) was roughly $3,200-14% higher than the year before, according to tax officials. However, that’s no guarantee, and the IRS is warning people “not to rely on receiving a 2022 federal tax refund by a certain date, especially when making major purchases or paying bills.” Typically, the processing time for returns that receive refunds is 21 days. The standard deduction for heads of household will jump to $20,800 for tax year 2023, a $1,400 increase. Next year, when you file your 2023 taxes, you’ll see those numbers climb to $27,000 for married couples filing jointly (an $1,800 increase) and single taxpayers and married individuals filing separately will see the standard deduction rise to $13,850, up $900. And for heads of households, the standard deduction will be $19,400, up $600. For single taxpayers and married individuals filing separately, the standard deduction was up $400 to $12,950. The standard deduction for married couples filing jointly jumped $800 to $25,900. What’s the standard deduction for the 2022 tax year? Many people, though, might not have all the paperwork they need at the start of filing season or delay their filing if they expect to owe taxes. The start of tax season is generally one of two peak times for the IRS, as people with relatively simple tax filings and those expecting big refunds often file as soon as possible. The Internal Revenue Service will begin accepting and processing tax returns for the 2022 tax year on Monday, Jan. Here are some answers to the most frequently asked tax questions. Also, there are steps you can take which can get you a refund next year (or a bigger one if you're in line for money back for your 2022 filing). Fortunately, you can get free help putting together your taxes-and you can always get an extension if you aren't able to finish in time. Still, there’s plenty of confusion among taxpayers. IRS watchdog, the National Taxpayer Advocate, said earlier in January that “a light at the end of the tunnel” of the IRS’ customer service struggles is within sight as the agency hires thousands of new workers. The good news? Things should be better than last year. "The IRS cautions taxpayers not to rely on receiving a 2022 federal tax refund by a certain date, especially when making major purchases or paying bills," it said in November. (This comes as millions are still waiting on their returns from last year to be processed.) The tax agency has warned that some returns may need extra time to review this year, slowing the process. If you do get a refund, it could take a little longer, too. And the IRS has already warned taxpayers that refunds are likely to be smaller-with some people who expect to get money back ending up owing the government instead. 23, the 2023 tax season will be officially underway, as the Internal Revenue Service begins accepting and processing 2022 returns.Īfter a squishy few years of malleable tax law, thanks to the pandemic, the rules are a lot tighter this year.
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