|How can I quickly receive my tax refund during the 2023 filing season?|
Despite a decrease in inflation, many Americans are still struggling financially and are planning to use their tax refunds to pay for basic expenses.
According to a survey by Credit Karma, 30% of taxpayers will rely on their refund to make ends meet in 2023. The survey also found that nearly 75% of Americans are expecting a tax refund this year, and for many, it will be the most significant financial windfall of their year.
Tax refunds are typically given to taxpayers who have overpaid their taxes the previous year. In 2022, nearly 75% of filers received a refund, with an average payment of around $3,176, which is an increase from 2021's average payment of $2,800.
If you're still waiting for your tax refund, the IRS will soon pay you interest at a rate of 7%. With inflation remaining high, many taxpayers are counting on the money they receive from their tax refund to make important purchases, save for retirement, or pay off debt.
To ensure that you receive your refund as quickly as possible, the IRS recommends that you file your returns electronically, double check that they are accurate and complete before submitting, and request to receive the refund via direct deposit.
According to Tom O'Saben, the director of tax content and government relations at the National Association of Tax Professionals, filers should do "whatever they can" to submit their returns electronically, as paper returns can cause delays of months, rather than weeks.
The IRS has issued 12 million tax refunds after correcting for the 2020 unemployment benefit break. To get a refund faster, taxpayers are advised to request to receive the money via direct deposit which could trim around 10 days off the timeline for return.
One of the most important factors to receive the refund as soon as possible is to check the return before submitting it and make sure there are no mistakes that could cause the IRS to flag it for further inspection.
Double-checking Social Security numbers and making sure they match up to the last name is crucial, especially for newlyweds who may have legally changed their last name but not for their Social Security number yet.
The IRS previously warned that refunds may be smaller in 2023, as no stimulus payments were delivered by the federal government in 2022. Tax season starts on January 23, and most taxpayers will have until April 18 to submit their returns or request an extension.