Be Prepared: Your 2023 Tax Refund Could Be Smaller & Delayed
Many people rely on their tax refunds to purchase larger expenses or pay off debt. Others look forward to placing the lump sum return in their savings account for a bit of a financial cushion.
Unfortunately, your ability to do any of these things with your 2023 refund may be hindered since the amounts received are likely to be smaller than expected—and, depending on how you file, it may take longer to get your refund too.
Smaller Refunds Expected for the 2022 Tax Year
If you had too much money withheld for taxes in 2022 or otherwise paid too much to the federal government, you are due a refund to correct the overpayment. However, on November 22, 2022, the IRS issued a news release stating, in part, that “refunds may be smaller in 2023.”
One of the reasons for a smaller-than-expected tax refund is that there were no stimulus payments in 2022. Another is that if you don’t itemize your return, you’re not able to deduct monies donated to charities. Both of these together can reduce your refund amount.
Tax Refund Delays
In this news release, the IRS further warns taxpayers to not rely on receiving their 2022 refund by a specific date. Some returns may be delayed due to needing additional review while others can’t be processed too early—such as if you claim the Earned Income Tax Credit (EITC) or Additional Child Tax Credit (ACTC). In both of these cases, the earliest you can expect your refund is the middle of February.
On the IRS’ Frequently Asked Questions page, it indicates that, as long as your tax return is accurate and complete, you can generally expect any refund due within 21 calendar days. That is unless you filed on paper. As of mid-2022, paper filings can take six months or more to process. If you don’t want to wait that long, Sherman & Associates can help.
We Can Help Maximize Your Refund While Minimizing Delays
At Sherman & Associates, we file our clients’ returns electronically, double-checking them for accuracy and completeness. This helps minimize any potential delays. We also stay updated on the latest tax laws. This enables us to get you the most deductions possible on your tax returns, maximizing the refund on your return.
Contact us at (800) 309-7790 today to schedule your appointment.