(TheConservativeTimes.org) – With tax season now in full swing, the IRS has stated that there may be a possibility of a higher refund than what people received last year. With the tax season hitting mid-pandemic last year, many were surprised to find out that they were getting less money back in tax refunds. Many even had to pay back taxes that they wouldn’t have usually had to pay.
With this being said, people can expect to see a bigger tax refund than they saw last year. Some people can even expect to see as much as a 10% increase than they did just last year.
Last year IRS statistics showed that the average tax refund was $3,167, less than in 2022, because the extra child tax credit that many were receiving during the pandemic had to be accounted for.
The lower tax refund actually hurt people heavily as it was at a time when people were facing high inflation as well. Tax refunds are said to be a big chunk of many families’ annual cash deposits, and it’s often used to pay down debt or to put toward larger purchases and savings. Many Americans really felt the effects last year with the lower tax refund, but this year for 2024 it’s expected to be a little different.
The high inflation is what is prompting the changes in the tax brackets and allowing some people to get a larger tax refund. According to the IRS, there was an increase of 7% for the tax brackets, but what does that mean?
Mark Steber, of Jackson Hewitt, said, “Say your income didn’t keep pace with inflation — you made the same as the prior year but didn’t increase your income by that inflation rate of 7% or so — you could see a better refund. We are predicting a higher refund for those people, up to 10%,” when explaining what this meant for many Americans.
He’s predicting that many lower and middle-class Americans didn’t meet the threshold they were setting, which means that they would be receiving a larger tax refund this year. He also stated that those who expanded home energy tax credits may also see a higher refund this year.
Many can expect a different refund than they received last year due to this. People can expect to plan to file taxes from January 29 through April 15, 2024.
Copyright 2024, TheConservativeTimes.org