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IRS Warning: 2023 Tax Refunds Could Be Smaller – See Why

Internal Revenue Service 1040 Individual income tax forms for 2021 arranged in Louisville, Kentucky, U.S., on Tuesday, April 12, 2022. Refund sizes in some cases have been up by nearly 25% compared with last year due to pandemic relief programs and rising wages. Photographer: Luke Sharrett/Bloomberg

Consumers, already suffering from the highest inflation in a generation and facing the prospect of a recession, may not even get as much of a tax refund as they could hope for in 2023. Accountants say it’s important to pay more attention to your returns so that they can.

The IRS warned on Tuesday that tax refunds could be smaller given the lack of stimulus payments in 2022. He also pointed out an exception during the 2020 and 2021 pandemics where those who received the standard deduction could claim a tax credit of up to $300. Cash donations to charity were not extended. The only way to write off charitable donations is to list them. This is worrying for the millions of Americans who need a tax refund for making big purchases, savings, investments, or paying off debt.By 2022, 46% of taxpayers will said they rely on tax refunds for some of these things, according to a LendingTree survey.

But tax experts say there’s nothing to worry about just yet. “There are still many tax incentives, deductions, deductions and ways to pay the minimum amount of tax and receive the maximum amount of refund,” said Mark Steever, chief tax officer at Jackson Hewitt.

READ ALSO: Americans Can Now Apply For Relief Payment Up to $1,000 – See Qualifications

What are the basic tax preparation steps to take now? organize. “Filing cabinets and files he doesn’t need to be very tidy with keepers,” Steber says. “Simply organized with shoeboxes and large envelopes, it helps to prepare tax returns more accurately and with less stress.”

Income item deductions and credits life changes last year’s tax return

Get your help ready. Taxes can be complex and difficult to understand so ensure that you or your tax advisor use good tax techniques when filing your taxes. If you hire a professional, make sure the person is trustworthy, trained, and experienced.

 

 

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