IRS Tax Refund: Could you receive a bigger refund in 2022?

In 2022, tax refunds were generous to taxpayers. With another problem added to the equation (gas price increase due to the Russian invasion), tax refunds could provide some needed money for families.

According to the Internal Revenue Service (IRS) numbers, in 2021, the average refund in March was $2,815.

In 2022, taxpayers experienced a 13.7% increase in the average federal tax refund amount. Through March 4, taxpayers received $3,401.

Indeed, you could receive a larger refund for your 2021 taxes (due in 2022) after sending them.

Nevertheless, that’s not it.

According to Sandra Block, “Taxpayers who were eligible for a third Economic Impact Payment and didn’t receive a check, or received less than the full amount, will have the opportunity to claim the recovery rebate credit when they file their 2021 tax return.”

The credit has a value of $1,400.

Meanwhile, families who claimed the expanded CTC $3,600 in 2021 will have the opportunity to claim it in the tax return season.

The IRS reported they received 54.7 million individual income tax returns. It’s less than 2% lower than last year’s numbers.

However, the same IRS already processed more than 53 million returns. An increase of 8.3% compared to March 2021.

The IRS is still struggling with delays from the 2020 tax season. However, if you filed your taxes with anticipation, the possibilities to receive your tax refunds on time are bigger.

Can I get a smaller refund?

Tax experts believe that not every taxpayer will get a larger refund. Tax professionals and Susan Tompor enlisted various reasons:

– Many who are back working are seeing higher wages, which even could put them in a higher tax bracket than the prior year.

-Unemployment compensation is taxable in 2021 and you could end up paying taxes on jobless benefits now.

-The advance child tax credit was “advanced”. Taxpayers received a benefit in advance.

-taxpayers aren’t seeing an interest deduction for student interest for federal student loans because they didn’t make any payments in 2021.






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