Tax season is officially here. The IRS began accepting tax returns Monday, January 23 until April 18th. As the season gets underway, a warning from the IRS-your tax refund will likely be smaller this year.
The end of the pandemic era stimulus checks, tax relief, and changes to several tax credits and deductions are adding up to many taxpayers finding refunds lower than what they've seen the last few years.
"The biggest impact that I think most taxpayers are going to feel is slightly less in their tax refund," explained IRS Agent Luis Garcia.
"That's because a lot of the pandemic-related tax relief, the past child tax credit, the stimulus payments, all of those things have all gone away, and we're now back to just regular old tax season. So, it may be a little bit less in the tax refund this year," Garcia added.
Raleigh accountant Faith Bynum Patterson says if you regularly count on a refund, you may want to take a look at adjusting your deductions so you get more money back in your paycheck throughout the year.
"Tax refunds are a lot to wait on," Patterson said. "So, maybe think about adjusting your withholdings during the year so you get more of your money during the year and not have to wait for this large chunk of money to come at a certain time," she added.
Patterson says filing early and online with direct deposit is advised especially with the backlogs the last few years.
This year, the normal filing deadline of April 15th falls on a Saturday, and Monday the 17th is a holiday in Washington, D.C., so this year's tax deadline is Tuesday, April 18th.