Between inflation and new tax laws, your tax refund for 2023 may be less than expected. Take a look at what might affect your 2022 taxes.
The answer to whether your tax refund will be bigger in 2023 is not a straightforward one. It depends on several factors, including changes in tax laws, inflation, and your personal financial situation. In general, tax refunds may be smaller in 2023 due to the new tax laws that went into effect in 2018.
Under the new tax laws, many tax breaks and deductions were reduced or eliminated. This means that taxpayers may not be able to claim as much on their tax returns, which could result in smaller refunds. Additionally, inflation can also play a role in the size of your tax refund. If your income and expenses have gone up, you may owe more in taxes, and therefore receive a smaller refund.
Delayed Refund Processing
The IRS has also warned taxpayers not to rely on receiving their tax refunds by a certain date. Due to increased fraud and identity theft, the IRS is taking extra precautions to ensure that refunds are being sent to the correct individuals. This may result in delayed processing times and a longer wait for your tax refund.
Smaller Tax Refund
It’s essential to keep in mind that a smaller tax refund is not necessarily a bad thing. A tax refund is a return of money you overpay to the government throughout the year. By receiving a smaller refund, it means that you had less money withheld from your paycheck, which means more money in your pocket throughout the year.
Maximize Your Tax Refund
If you’re concerned about receiving a smaller tax refund in 2023, there are steps you can take to help maximize your refund. This includes reviewing your W-4 form and ensuring the correct amount of taxes are being withheld from your paycheck. You may also want to consider adjusting your withhold taxes or making estimated tax payments throughout the year to help balance out your tax liability.
Help with Filing
K&B Tax Service is a trusted and experienced tax preparation service that specializes in helping individuals and businesses get the most out of their tax returns. With a team of tax professionals and up-to-date knowledge of tax laws and regulations, we are equipped to handle even the most complex tax situations.
Our goal is to ensure that our clients receive the largest tax refund possible while making the process as stress-free and easy as possible. Whether you are an individual or a business owner, we have the expertise and resources to help you navigate the tax system and take advantage of all the available deductions and credits.
The deadline to file for the 2022 tax year is Tuesday, April 18, 2023. Contact us today to schedule a consultation for your individual income tax return or filing your return for your business and let us help you get the most out of your tax return.
