(FiveNation.com)- A recent survey found that about 30 percent of American taxpayers expect to receive a smaller refund from the IRS on their 2022 tax returns while another 24 percent don’t know what to expect.
According to Curtis Campbell, the president and CEO of tax-preparing software firm TaxAct which released the survey, it is expected that the amount refunded for 2022 tax returns will drop by 11 percent compared to last year due to recent changes in the tax code.
In early March, the IRS released data showing that, on average, tax refunds are 11 percent smaller this year than a year ago. At the same time, while the size of tax refunds is smaller, the agency has sent out more refunds to taxpayers so far this year than the previous year.
By March 3, the average tax refund amount was $3,028, down from last year’s average of $3,401 by the same period. However, the IRS sent out 42 million refunds to taxpayers by March 3, up from the 38 million refunds that were sent out by March 3 of last year.
The TaxAct survey also found that taxpayers are “overwhelmingly concerned” about inflation, citing it as their biggest concern in 2022 and 2023. More than half of those surveyed rank inflation as their top financial concern. According to TaxAct, this sentiment was strongest among taxpayers with dependents and those who are white or Hispanic.
Last November, the IRS warned that refunds in 2023 will likely be smaller since taxpayers did not receive Economic Impact stimulus payments during 2022. Additionally, the IRS reminded taxpayers who don’t itemize but take the standard deduction that they will not be able to deduct charitable contributions on their 2022 tax return.
The change to above-the-line charitable deductions, along with the expiration of the mortgage insurance premium deduction, will lead to many American taxpayers receiving smaller tax refunds this year.
