Tax season begins Monday; here’s why your refund may be lower this year

U.S. taxpayers can begin filing tax returns Monday as this year’s tax season begins.

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Around 5,000 new customer service representatives will come onboard to man phones and help Americans finish returns, according to U.S. Deputy Treasury Secretary Wally Adeyemo.

The 5,000 new customer service employees will be fully trained by Feb. 20 when call volume from taxpayers typically increases, Adeyemo said.

While taxpayers can begin to submit their returns now, they may be surprised when they see the amount of their refund.

According to some financial advisors, changes to several tax credits and deductions will result in some filers seeing less in this year’s refund.

“People should absolutely expect smaller tax refunds this year. And frankly, some people might even owe the government money,” financial expert Lynnette Khalfani-Cox told NPR.

What has changed to cause refunds to shrink? Here is a look at what is different this year:

Smaller refunds

The IRS said in a November release that “Refunds may be smaller in 2023.”

“Taxpayers will not receive an additional stimulus payment with a 2023 tax refund because there were no economic impact payments for 2022.

“In addition, taxpayers who don’t itemize and take the standard deduction, won’t be able to deduct their charitable contributions.”

Credit amounts for the Child Tax Credit, Earned Income Tax Credit and Dependent Care Credit have changed and that could lower a filer’s refund.

If you were laid off last year and received a lump sum payment for severance, that money will be taxable, according to the IRS.

How can you get your refund quicker?

According to the news release, the IRS “cautions taxpayers not to rely on receiving a 2022 federal tax refund by a certain date, especially when making major purchases or paying bills.”

To get refunds more quickly, the IRS suggests taxpayers file electronically and use direct deposit for their refund.

When is the deadline to file taxes?

Taxpayers have until Tuesday, April 18 to submit their returns or request an extension. That’s because April 15, the usual deadline, falls on a Saturday.

April 17 is the Emancipation Day holiday in Washington, so the IRS will be closed.

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