How much will your 2023 tax refund be? It could be smaller this year, IRS says
The deadline to file your taxes in 2023 is April 18, but it’s never too early to start thinking about submitting your return.
Taxpayers can submit their returns to the IRS for processing in late January. Filers will have nearly three months to gather necessary documents, fill out relevant forms and pay outstanding taxes.
This year, taxpayers who received credits from programs implemented during the COVID-19 pandemic will see smaller refunds, according to the IRS. The agency also announced a delay in a rule that would affect many who use payment apps like Venmo and Zelle.
Here’s what you need to know when you file your taxes this year, based on information from the IRS.
Tax credits return to 2019 levels
The IRS made changes to amounts for the Child Tax Credit (CTC), Earned Income Tax Credit (EITC) and Child Development Care Credit means more taxpayers will likely receive smaller refunds this year.
Taxpayers who got $3,600 per dependent in 2021 will receive, if eligible, $2,000 for the 2022 tax year.
Eligible taxpayers who received $1,500 for the EITC will get $500 in 2022.
The Child Dependent Care Credit returns to a maximum of $2,100 in 2022 instead of $8,000 in 2021.
No above-the-line charitable deductions
Taxpayers could take up to a $600 charitable donation deduction on their returns during COVID. But in 2022, those who receive a standard deduction may not take an above-the-line dedication for charitable donations.
1099-K tax reporting
On Dec. 23, the IRS announced a one-year delay on a rule that would require people who use payment apps like Venmo and Zelle to report transfers of more than $600.
Business owners will still be required to report their income on tax returns, regardless of whether they receive 1099-Ks, CNBC reported.
When will you get your tax refund?
It generally takes less than 21 days from the time the IRS approves the amount to receive a refund.
Those who file online can check the status of their returns after 24 hours have passed from the file date. This can be done on the IRS2Go app or through the “Where’s My Refund?” tool on the IRS website.
The fastest way to get your tax refund is by direct deposit. Taxpayers can deposit their refunds in up to three accounts.
