The average tax refund from the IRS in 2022 has risen by 13.7%. The increase could lead to financial assistance amid inflation.
In 2021, the average refund was $2,815.
Many Americans are seeing this money at a time when gas prices are increasing and grocery costs are suffering from inflation.
Why are some people seeing bigger refunds this year from the IRS?
Many Americans actually missed out on a stimulus payment they were entitled to, and have claimed them with their refund.
Each credit is worth $1,400.
In addition to collecting missed stimulus payments, families are also collecting child tax credits worth $3,600 per month.
Will some people see smaller refunds?
There are many people who will not see bigger refunds this year.
Those who make higher wages won’t see as big of a refund.
Unemployment benefits are fully taxable again this year, unlike last year. You may end up owing taxes on them.
Some parents who saw the advanced payments for child tax credits can expect a smaller refund because they already got some of it.
There is not a deduction on student loan interest this year due to the payment pause.
These reasons can all make your refunds smaller.
FingerLakes1.com is the region’s leading all-digital news publication. The company was founded in 1998 and has been keeping residents informed for more than two decades. Have a lead? Send it to [email protected].