Although no new stimulus checks will be issued, stimulus payments could likely result in bigger refunds this year.
According to the IRS's most recent figures, the average refund granted so far this year is higher than last year's. It is thought that a link between stimulus checks and tax returns is causing consumers to earn bigger refunds. The tax filing season began on January 24 this year, and the deadline to submit is April 18.
Average Tax Refund Is Higher Than Last Year
Last year, the American Rescue Plan Act provided qualified beneficiaries with up to $1,400 in stimulus funds. The $1,400 stimulus check was an advance tax credit, the same as the previous stimulus checks.
Those who did not receive stimulus funds last year might claim them this year by completing a tax return. Many feel that claiming unpaid stimulus funding is one of the reasons for this year's higher average return amounts.
The IRS has disclosed tax return statistics (for the period of February 18, 2022), revealing that it had processed more than 33 million returns. The average return amount granted thus far is $3,536, compared to $2,880 in 2021. It means that taxpayers will get $656 more in their tax refund this year on average.
It's worth noting that $656 is an average amount, which means that many taxpayers would have received a lesser return while others would have received no change and others would have received a larger refund than the average, according to Entrepreneur.
Even though the IRS sent out the entire amount of the stimulus checks and half of the expanded Child Tax Credit in 2021, people who did not have their data on file with the IRS because they had not sent in recent returns or who added a dependent during the previous year may not have received any of this money.
If these people have been eager to submit their returns to get their hands on this money, it might be one of the reasons why the average refund has been higher this year. Things might change though since it is likely that individuals who are expecting a refund sent in their taxes earlier than those who owe.
If that is the case, the significant increase in average refunds sent in the 2022 filing season may not be sustainable. However, for the time being, IRS data reveals that many Americans are receiving more money from the agency this year than they did a year ago, as per Fool.
How Long Should It Take To Receive My Tax Refund?
According to authorities, most Americans should anticipate their refund checks to arrive within weeks of completing your taxes, despite a backlog and staffing challenges caused by the ongoing COVID-19 outbreak.
Americans may anticipate their refund money to come within 21 days after filing, pending some delays, according to the IRS. The funds may also be traced on the IRS website for around 24 hours after filing.
To obtain the fastest refund in 2022, the IRS recommends filing electronically and setting up direct deposits to have the money paid directly to the bank. Some people have already begun to get refunds as a result of submitting their taxes early.
Officials warned that if a tax return has any inaccuracies the wait for a refund might be lengthy, owing to the backlog and manpower shortfall. Those who want to deposit funds directly may see a brief delay while their bank processes the transaction, Daily Voice reported.
Related Article : Tax Refund 2022 May Come on March 1; Here's How To Check If You Have Received Your Money!
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