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The Surprising Upsurge in Tax Refunds This Year

Inflation-adjusted Tax Brackets and Deductions Boost Refunds

Proposed Child Tax Credit Changes Aim to Aid Low-Income Families

(PHOTO: The Surprising Upsurge in Tax Refunds This Year)

According to First Coast News, millions of Americans have received their tax returns and many are seeing larger refunds this year. The Internal Revenue Service reports that refund amounts are 2% higher than in 2023 with an average refund of $3,207 so far. This increase is partly due to the IRS adjusting tax brackets and standard deductions by 7% to account for inflation.

Larger tax refunds for Americans this year are partly due to adjustments made by the IRS to combat inflation. They raised tax brackets and standard deductions by 7% for taxes owed in 2023. As more tax returns are processed, the average refund amounts may fluctuate. The tax season began on January 29, seven days later than in 2022. Despite the delayed start, the IRS reports a robust start to the season. The IRS anticipates over 128.7 million tax returns will be filed during this tax season.

The current child tax credit is $2,000, but only $1,600 can be refunded. Congress recently proposed a change to gradually increase the refundable amount to $1,800 in 2023, $1,900 in 2024, and $2,000 in 2025. This would help about 16 million children in low-income families. Lawmakers hope to pass this bill soon, but the IRS advises taxpayers not to wait to file their 2023 taxes.  If Congress enacts revisions to the Child Tax Credit, the Internal Revenue Service (IRS) will promptly adjust the tax returns of individuals who have already filed to incorporate these modifications. This process ensures that taxpayers receive the appropriate benefits or adjustments resulting from changes to the tax credit without requiring them to take additional action. By automatically updating tax returns, the IRS streamlines the process for taxpayers and ensures that they receive accurate tax refunds or adjustments in a timely manner, reflecting any changes implemented by Congress.

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Track Your Tax Refund and Meet Tax Deadlines

Typically, the IRS processes tax refunds approximately 21 days after you submit your return. To track the status of your refund, use the “Where’s My Refund?” tool available on the IRS website. Note that the deadline for filing your 2023 tax return is April 15, 2024.

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