| Tax season kicks off for individual filers on Jan. 23 – and amid high inflation, many taxpayers are hoping for financial aid in the form of a tax refund.
Almost a third, 30%, of Americans say they will rely on their tax refund to make ends meet this year, according to a new Credit Karma survey. Gen Zers and millennials were even more likely to say they will depend on the payment, at 40% and 46%, respectively.
But it's important to temper your expectations, points out CNBC reporter Kate Dore: The IRS has warned taxpayers that refunds may be smaller this year now that many pandemic-era tax breaks, including bigger child tax credits and more generous charitable deductions, have expired. Wait until you have the money in hand before making any big moves.
While the IRS typically issues tax refunds in fewer than 21 days, the agency has cautioned taxpayers not to rely on receiving their refund by a specific date. The agency says some returns may require "additional review" and take longer to process if the IRS systems find an error, there's missing information or the agency suspects identity theft or fraud. The law also requires the IRS to hold refunds until mid-February for people claiming the earned income tax credit — a tax break for low- to moderate-income workers — or an additional child tax credit.
For more advice to help you make smart financial decisions, check out CNBC's Financial Advisor Hub and Personal Finance section. |
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