In an early December survey by Credit Karma, roughly 1,000 U.S. adults were polled, and 30% of Americans said they would use their tax refund to make ends meet. In contrast, the percentage of Gen Zers and millennials who said they would be dependent on the payment was even higher, at 40% and 46%, respectively.
Experts believe nearly three-quarters of Americans will receive a refund this year, which will be the biggest financial windfall for many.
It may be easier to get a tax refund this year since the cost of living has soared. However, financial difficulties may be greater this year as a result of the high cost of living.
The US Bureau of Labor Statistics reported on Thursday that annual inflation fell to 6.5% in December. Inflation is at its highest level in decades while prices are dropping.
Despite this, the IRS is warning taxpayers that refunds will likely be smaller in 2023 as a result of the expiration of many pandemic-era tax breaks, such as child tax credits or more generous charitable deductions. Despite the government shutdown, the average refund in 2022 was $3,176, up 14 percent from $2,791 in 2021, according to the IRS.
Tax refunds: how to get them faster
A few things can be done to avoid issues that may cause your refund to be delayed, say financial experts.
It is recommended that taxpayers file their returns via electronic medium. It is popularly believed that if you mail something to the IRS, you can anticipate that it will get lost.
Paper-filed returns can take longer to process since the agency usually issues refunds within 21 days of receiving them. “Taxpayers should prepare to file electronically and choose direct deposits for their refund,” the IRS said in a news release.
Various reports indicate that another cause for processing delays is the lack of data. The correction of incorrect personal information may take longer than expected.
The IRS announced Thursday that the tax filing season for individuals would begin on Jan. 23.
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