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IRS: Are refunds bigger this year because of credit expansions?

There have been refunds bigger than normal this tax season.

refund tax checks

The last day to file or request an extension is April 18.


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What are credit expansions?

If you requested a temporary tax credit expansion, you might get your biggest refund yet. Read more about it here.

Expanded tax credits for families is a deduction for non-itemizers who donate to charity. There is a higher limit for itemizers who give to charity and are among the American Rescue plan changes that taxpayers will see on their 2021 federal tax return.

Many people who don’t typically need to file a return should consider filing in 2022. This way they could take advantage of expanded benefits like the Recovery Rebate Credit, Child Tax Credit, Credit for Child and Dependent Care Expenses and Earned income tax.

The expanded credits will lead to bigger refunds for lots of people. The IRS recommends filing online and selecting direct deposit to get your refund faster and avoid delays.

The American Rescue Plan increased the credit and eligible expenses for child and dependent care. It also modified the phase-out of the credit for higher earners and made it refundable.


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