Average refunds are decreasing due to later filing dates and fewer returns filed. (iStock)
This year’s tax refund amount for early taxpayers is decreasing. His average refund for the first few weeks of tax filing season is $1,395. IRS data showed.
Last year, the average refund within the first few weeks of filing was $1,963. His tax refund has decreased by 28.9%, but tax season has only just begun. This drop in the average refund is likely due to fewer people filing tax returns. Nearly 19 million taxpayers have filed through February 2023, but only about 15 million have filed so far this year.
The fact that filings began later this year may also have contributed to the lower refund amount. Applications opened on January 23 last year and January 29 this year. In general, your refund is likely to level out as tax season continues.
“Absent any changes by Congress, we expect things to be about the same. If anything, the child tax credit changes will increase refunds on average.” explained said Tom Oseven, director of tax content and government relations at the National Association of Tax Professionals.
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Tax filing has become easier in some states
This year, 12 states qualified for the IRS’s Direct File program. To make filing easier and eliminate middlemen like TurboTax and other filing software, the IRS has created its own filing system.
The program is being rolled out in phases, allowing the IRS to work out any bugs in the system before rolling it out nationwide. Currently, states eligible for the Direct File program include Arizona, California, Florida, Massachusetts, Nevada, New Hampshire, New York, South Dakota, Tennessee, Texas, Washington, and Wyoming.
This program is aimed at low-income filers who cannot afford other expensive tax preparation options.
“I really hate to see low-income people give their money to paid preparers. It makes me angry,” said Robert Nassau, director of the Low-Income Taxpayer Clinic at Syracuse University School of Law. . Said. ”[The program is] Now that we have one more option for free tax preparation, we hope people will take advantage of it. ”
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Certain states offer tax filing extensions
States affected by natural disasters can receive tax filing extensions. Most taxpayers must pay their taxes by April 15th, but some states Applications must be submitted by June.
Connecticut suffered severe flooding in January, leaving thousands of residents without power for weeks. Businesses and residents affected by the flooding have until June 17th to file tax returns.
Due to severe flooding late last year, Maine residents in some counties also have until June 17 to apply. Residents of Androscoggin, Franklin, Hancock, Kennebec, Oxford, Penobscot, Piscataquis, Somerset, Waldo and Washington counties have all had their filing deadlines extended.
Rhode Island, another northeastern state, has also been granted tax breaks. Only Providence County, which was hit by severe storms last year, is eligible for an extension to file tax returns. Residents of this county also have until June 17th to file.
Residents of four counties are eligible for extensions due to the frequent tornadoes that caused widespread destruction in Tennessee in December. Davidson, Dickson, Montgomery, and Sumner counties were hardest hit by these storms. Residents must file a federal income tax return by June 17th.
The last state to qualify for an extension is West Virginia. Last summer, West Virginia faced flooding, landslides, and mudslides that damaged many homes. Taxpayers in Boone, Calhoun, Clay, Harrison and Kanawha counties have their filing deadline extended to June 17th.
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