If you’re banking on a tax refund, it may be “somewhat lower” than last year’s payment, according to the IRS.
Typically, you can expect a federal refund if you’ve overpaid yearly taxes or withheld more than what you owe. One of the big reasons for smaller payments this year is expiring pandemic relief, which was delivered via tax breaks for 2021 returns, experts say.
Meanwhile, many Americans are still struggling financially, with nearly one-third relying on their tax refund to make ends meet, a recent Credit Karma survey found.
Joe Buhrmann, a certified financial planner and senior financial planning consultant at eMoney Advisor, said smaller refunds and high inflation may be a “double whammy” for some families.