Expecting A Tax Refund This Year? Prepare To Be Disappointed!
There are only two things in this world that are certain, or so the saying says. Death and Taxes. When it came to filing my tax returns from last year, when all was said and done, I basically broke even. I lived in two states, I collected unemployment, I moved and I paid an accountant to make sure all was correct.
Normally I get a refund every year. The amount varies, obviously. I was expecting a decent one this year. I tend to make sure I get all of the taxes taken out from my paycheck so I do not owe money around tax time. I also get to deduct interest from student loan payments.
Well if you were expecting a decent refund this year, you may want to temper your expectations. At least according to the IRS. This may not make a lot of people happy. Taxpayers may need to prepare for smaller tax refunds in 2023. Refunds could be smaller because taxpayers didn’t receive stimulus payments this tax year.
In case you didn't really know, your refund is based on taxable income calculated by subtracting itemized deductions from your gross income. The IRS also warns taxpayers not to rely on receiving their tax refunds by a certain date, “especially when making major purchases or paying bills.” You can get more info HERE.
Now, if you want your refund (however large or small it may be) quicker, you would be best to request a direct deposit of your refund. Electronic filing is also a option. As I recall, the accountant I used last year, was able to secure all of that, and if you happen to owe money, that was easy to take care of as well.
Make sure you know of all the credits that you can get, especially those of you with children. Hopefully your refund will be decent enough for you to spend how YOU see fit. But at least now, you can temper your expectations.