Why Your Tax Refund Will Probably Be Smaller This Year
Starting Monday, the IRS will start accepting 2022 tax returns and begin issuing refunds. This year’s deadline to file is Tuesday, April 18th – giving procrastinators a few extra days due to April 15th falling on a Saturday this year. Hoping to get your refund quickly? Better file online – people who file electronically with direct deposit can expect their refund within 21 days. Paper returns could take much longer, with the IRS already sitting on a massive backlog.
Your refund might be smaller this year, with several pandemic-era tax breaks coming to an end. Financial expert Lynnette Khalfani-Cox told NPR, “People should absolutely expect smaller tax refunds this year. And frankly, some people might even owe the government money.”
“There are really four main reasons why,” she said. “The first is no more stimulus checks. The second is that what was called the enhanced child credit — that’s gone.”
A special pandemic-era tax break for charitable deductions was also nixed, Khalfani-Cox said. And even after a volatile year on the stock market, some people might face taxes on investment gains, especially if they own mutual funds that had to sell off stocks.