With tax season approaching, H&R Block’s CEO, Jeff Jones, suggests there are reasons to look forward to filing this year. Despite the usual apprehension associated with taxes, Jones believes this season might be easier for filers, with potential improvements in the simplicity of the process and the size of refunds according to MarketWatch.
Jones acknowledges the typical love-hate relationship Americans have with taxes but points out the positive aspect of a “normal tax season.” He notes that, for now, there seem to be no significant tax-law changes or disruptions, making filing uncomplicated.
While the pandemic caused disruptions in previous years, Jones assures that there are no indications of policies affecting average refunds negatively for the upcoming tax year. Last year’s average refund was $3,167, and early signs this year suggest potential increases.
H&R Block, handling around 20 million tax returns annually, reports early indications of higher refunds. However, Jones advises caution, as these averages may evolve as more returns are processed.
Possible Twists and Turns
The IRS’s test of its online tax-filing platform, the “Direct File” program, raises concerns for tax-prep companies like H&R Block. Despite criticism, Jones remains unfazed, citing minimal impact in countries where similar government-driven systems exist.
Potential changes to the child tax credit could affect the upcoming tax season. A bipartisan deal may make the credit more generous for low-income filers. If passed, H&R Block is prepared to incorporate the new rules swiftly into tax-return calculations.