The IRS sent a press release on January 23, 2023, representing the beginning of tax filing season. This tax filing period, which runs from January to April 2023, is for your 2022 tax returns. You’ll provide details about the money you made the previous year, and in some situations, you’ll get a refund (or in other cases, you may owe taxes).
The IRS issued a critical warning on the effect of stimulus payments on the tax return you’ll submit this year in its news release. The IRS specifically said that you might not get the total amount of your tax return because there were no government stimulus payments received last year.
As most people depend on their tax refunds to support debt repayment, account growth, or the achievement of other significant financial objectives, you must read and appreciate this IRS warning so that you are not taken by surprise.
Based on an IRS news release, your tax refund might be less than it was during the previous tax filing season for two main reasons.
According to an IRS news release, “several taxpayers might find their refunds considerably lower this year because of tax law changes including the removal of the Advance Child Tax Credit and no Recovery Rebate Credit this year to collect pandemic-related stimulus money.”