From Time:

Americans are preparing for tax season with uncertainty, as many are expecting a lower refund than last year. A December survey of 2,500 adults found that a quarter of taxpayers anticipate a smaller refund for the 2023 tax return. 35% of respondents expect about the same amount, and 16% are unsure. This tax season, taxpayers are nervous about filing incorrectly, figuring out deductions, and the possibility of being audited.

Last year, the average tax refund was $3,167, about 2.6% lower than the previous year. Refunds were higher in 2022 due to pandemic policies such as stimulus checks and the expanded child tax credit. This year, taxpayers may see refund amounts similar to last year’s, or a decrease, due to the expiration of these policies.

Taxpayers are divided on whether getting a big tax refund is good. While it may seem like a larger refund is better, it may actually mean you’re overpaying taxes during the year. The IRS starts processing tax returns on Monday and Tax Day in most states is on April 15. Taxpayers in certain states may be able to file taxes for free using the Direct File pilot.

Overall, taxpayers may see smaller refunds this year due to the expiration of pandemic policies. Filing earlier can result in faster refunds, and taxpayers with an AGI of $79,000 or less in 2023 can use the expanded Free File program. For more info about key dates and what to look out for this tax season, visit this Money story.



Read more: Tax Refund Outlook: 25% Expect to Get Less From IRS in 2024