Tax Refunds For Millions of Americans May Be Smaller This Year, Says IRS
Americans will be unpleasantly surprised to find their tax refunds smaller than expected for 2022, with the IRS announcing reduced refunds for the coming year as well, in a blow to many who rely on the refunds as a supplement to their savings.
“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,” according to an IRS news release.
“In addition, taxpayers who don’t itemize and take the standard deduction, won’t be able to deduct their charitable contributions,” the release said.
According to analysts, 2021 pandemic-related government initiatives and recently passed changes to the tax code are some of the reasons for lower tax refunds….