IRS Updates Set Stage for Larger Refunds – Cash Back Alert!

Workers Without Pay Raises Could See Up to 10% Bigger Refunds

According to Market Realist, the IRS has made changes to tax rules for 2024 and adjusting brackets and deductions to account for higher living costs. This could mean bigger refunds for some people especially those whose incomes have not gone up much. The average refund so far this year is $3,207 up 2.1% from last year when refunds were lower due to the end of pandemic tax breaks. These changes like increasing the standard deduction and brackets have contributed to the bigger refunds.

Workers who didn’t get pay raises to keep up with rising prices could see even larger refunds, maybe up to 10% more. New tax credits introduced in 2023, like ones for energy-saving home improvements and buying clean cars, could also lead to higher refunds. But some people got smaller refunds in 2022 because certain tax credits, like the Earned Income Tax Credit and Child Tax Credit, ended.

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IRS Updates Set Stage for Larger Refunds – Cash Back Alert!( PHOTO: getty images)

Financial Concerns Persist Among Americans Despite Potential Tax Credit Improvements

There’s a proposed law, the Tax Relief for American Families and Workers Act of 2024, that aims to boost the Child Tax Credit, possibly leading to bigger refunds in 2024 and later. Also, a bill in Congress wants to make the Child Tax Credit better for 2023, which could mean more refunds for those filing their 2023 taxes. But many Americans are still worried about money, especially with things like food and energy costs going up.

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