The IRS recently released information for the 2022 tax filing season. This was based on tax returns filed for the fiscal year 2021. According to IRS data dated April 22, 2022, the average tax refund this year was 4.9 percent greater than the previous year. It’s possible that stimulus money is to blame.
This is why
Tax refunds are projected to be greater as a result of the stimulus payments.
The average refund in 2021 was $2,870, according to the IRS. However, by 2022, the average refund had risen to $3,012. The IRS has increased the amount of money it sends back to Americans by 4.9 percent. These refunds are usually put straight into taxpayers’ bank accounts or sent to them.
Millions of people have unclaimed stimulus payments from 2021, which is the most likely explanation for why Americans are getting extra money from the IRS this year.
The American Rescue Plan Act was passed by the Biden administration last year. It made a number of direct payments to Americans, including:
- A $1,400 cheque is given to each adult and dependent who is qualified.
- An increased Child Tax Credit of $3,600 for children under the age of six, and $3,000 for older children
Most people received all of the money from the $1,400 stimulus payments placed into their accounts or delivered to them last year, and they received half of the increased Child Tax Credit last year.
People who added dependents in 2021, whose income changed to make them eligible when they weren’t before, or who hadn’t supplied the IRS with recent tax returns, on the other hand, did not get any of these payments.
Anyone who owed money could get it back by filing a 2021 tax return during the 2022 filing season. And all parents who met the criteria could get half of their enhanced Child Tax Credit that they didn’t get last year.
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It’s hardly unexpected that tax refunds were greater this year than in recent years, given that many people were able to receive payments of $1,400 per qualified person in their home, and many others were entitled to at least half of the enlarged tax credit.
Are you eligible for additional funds from the Internal Revenue Service?
If you’re one of the many Americans who owed stimulus money and have already paid your taxes for 2021, you should have received or be receiving your payment from the IRS soon. When you submitted your returns determines whether you get your money or not.
It’s not too late if you didn’t file a tax return this year but owe money. You can still file a 1040 form with the IRS to request that they provide you with the money you deserve.