Taxpayers May See Smaller Tax Refunds This Season

By: BZ Green

According to tax preparers, many taxpayers will get smaller refunds when they file their tax returns for 2022. This is due to the expiration of certain provisions that Congress instituted during the Covid-19 Pandemic that were not placed into the budget at the end of last year.

According to the Wall Street Journal, the average individual tax refund last year was $3,176, up 14% from $2,791 in the 2021 tax season, according to IRS statistics. Things will not go back to how they were pre-pandemic, which means that even people who received a refund may now have to pay out to the IRS.

Some provisions being phased out or changed to lower deductible amounts are: Federal economic impact payments, state rebates/refunds, nonitemizer charitable deductions, child tax credits ($3000 to $2000 per child), and child and dependent care tax breaks.

photo credit: Flickr