Tax season comes to a close in under a week and millions of Americans have received or will receive their tax refunds from the IRS.
58 million refunds have already been sent out ahead of the deadline, which is April 18, 2022.
$189 billion has been sent so far, and the average refund was around $3,263 as of March 25.
In 2021 the average refund was $2,815.
IRS: Why did I get an unexpected tax refund?
This means Americans overpaid even more in taxes throughout the year.
However Americans choose to use their refunds, it could be put to good use.
This includes knocking out some high interest debt or saving it.
IRS tax season 2022
There are only 5 days left to file your taxes by the deadline of April 18, 2022.
Failing to file on time could create penalties worth hundreds of dollars.
This is known as the Failure to Pay penalty and you’ll be notified by letter.
The penalty is worth 5% of your unpaid taxes, but letting it go could cause it to reach up to 25%.
IRS: Some Americans getting $448 increase to their tax refund
By waiting longer than 60 days, you could see a fine worth $435 or all of your owed taxes, whichever is less.
Many Americans are filing for extensions because they’re still figuring things out with stimulus payments.
If you need to do this, it is important you make a good estimate to pay the IRS ahead of time.
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]