As the upcoming tax season looms, many Americans are wondering what changes they can expect in their tax refund checks for 2024, especially after the unexpected reduction in refunds due to the expiration of pandemic-era federal benefits last year.
The good news is that taxpayers might be in for a pleasant surprise this year, with the potential for larger refunds. In 2022, the average tax refund was $3,167, reflecting a nearly 3 percent decrease from the prior year. However, in 2022, the average refund check saw a notable 15.5 percent increase, reaching almost $3,300, thanks to substantialtax credits such as the expanded Child Tax Credit.
In an ironic twist, inflation, which impacted purchasing power in 2023, may work in favor of taxpayers in 2024. The IRS made adjustments for inflation, resulting in a more generous standard deduction and a 7.1 percent increase in tax brackets – a historically significant adjustment.
Benefiting From Potential Increases
Experts predict that various groups may benefit from these potential increases, including homeowners who utilized expanded home energy tax credits, individuals whose incomes didn’t keep up with inflation, and low-income families with children, thanks to the expanded Earned Income Tax Credit, with a maximum credit of $7,430 for the 2023 tax year.
However, Social Security beneficiaries may face higher taxes, as the threshold for taxing Social Security benefits remains unchanged, unaffected by inflation adjustments since 1984.
The IRSwill kick off the new tax filing season on January 29, providing taxpayers until April 15 (April 17 for residents of Maine and Massachusetts) to file their returns.
While most taxpayers receive refunds within 21 days, the IRS advises using the Where’s My Refund? tool on IRS.gov or the IRS2Go app to check the status, recognizing that some returns may require additional review.
“Where’s My Refund? has a tracker that displays progress through 3 stages: (1) Return Received, (2) Refund Approved and (3) Refund Sent,” the official IRS website reads.
“You will get personalized refund information based on the processing of your tax return. The tool will provide an actual refund date as soon as the IRS processes your tax return and approves your refund.
“Call us about your refund status only if Where’s My Refund? recommends you contact us.”