2022 Tax Refund: Don't Be Surprised If You Get Smaller Refund Payments

By Mary Webber Nov 24 2022, 20:07 PM EST

The Internal Revenue Service has received 3.7 million unprocessed individual returns as of Nov. 11, 2022. It includes the tax year 2021 returns and late filed prior year returns.

The IRS encouraged taxpayers to take simple steps before the end of the year to make filing their 2022 federal tax return easier.

However, the agency said on Wednesday that the refund for the 2022 tax year may be smaller in the past due to several recently passed changes to the tax code.

In addition, taxpayers had not received their Economic Impact stimulus payments for tax years 2020 and 2021, which resulted in larger tax refunds.

The IRS said in a statement that they are currently processing amended returns in the order received, and the current waiting time can be more than 20 weeks.

The agency urged taxpayers to continue to check Where's My Amended Return for a more current status update available.

Despite the smaller 2022 tax refund, there are a few new expanded tax credits for taxpayers, such as Premium Tax Credit and Clean Vehicle Credit.

2022 Tax Refund

Tax specialists noted that the biggest issue that could affect 2022 tax refund is the enhanced Child Tax Credit.

The IRS has yet to announce when it will start accepting tax returns. However, it usually opens for new filings toward the end of January.

Taxpayers receive tax refunds when they have paid more than they owe to the IRS throughout the year. IRS then cuts a check for the difference.

Tax experts said there are other issues with the Child Tax credit that could cut a taxpayer's tax refund, such as people who received the CTC payments but did not qualify for them.

A CPA and president and chief investment officer at Cyr Financial, Christian Cyr, said that many people could be in for a "rude awakening this year."

In addition, unemployment assistance during 2021 could also be the reason why so many will be seeing lower refunds this year.

People who received unemployment income can choose whether or not they want to have their taxes withheld; back taxes will be owed if you chose not to.

2022 Tax Refund Calculator

Using a tax calculator can help taxpayers to estimate their tax refunds or taxes owed. There are 2022 tax refund calculators or tools that will allow taxpayers to ask more specific questions.

The IRS also offers a Tax Withholding Estimator asking for information about you, income & withholding details, adjustments, deductions, and tax credits.

When using the tax calculator, you will also be asked about your gross income for the tax year and how much you contributed to a 401(k) or traditional IRA.

The number of dependents will also be required. Dependents are children 17 and under and those who qualify for the CTC.

Tax calculators usually help estimate tax refunds or tax bills or show that you might need professional help as your tax bill is larger or your refund is smaller than expected.

This article is owned by Latin Post.

Written by: Mary Webber

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