Expert Advice: Maximize Your Refund and Avoid Processing Delays this Tax Season

The U.S. Bureau of Labor Statistics announced on Thursday, January 12, 2023, that annual inflation fell to 6.5% in December. However, this figure remains at the highest level in decades. This news comes as the IRS has warned taxpayers that refunds may be smaller in 2023 due to many pandemic-era tax breaks, such as bigger child tax credits or more generous charitable deductions, having expired. As of Oct. 28, 2022, the average refund was $3,176, according to the IRS, which is a 14% Increase from $2,791 in 2021.

It is best to prepare your tax ahead of time and make sure it is error free to avoid any delays. (Photo: openloans.com)

Financial experts recommend filing electronic returns to avoid delays in the tax refund process. John Loyd, a certified financial planner, urges taxpayers to file electronically, and the IRS recommends choosing direct deposit for a faster refund, typically within 21 days, according to an article by The College Investors published on January 17, 2023.

Another reason for processing delays is tax return errors. Incorrect personal information, such as your Social Security number or mismatched data from tax forms, can take extra time to resolve.

The tax season opens for individual filers on January 23, the IRS announced Thursday, and it’s important to keep in mind that inflation is at the highest level in decades and many pandemic-era tax breaks have expired, resulting in smaller refunds. According to a CNBC report on January 24, 2022, to ensure a smooth process, it’s crucial to file electronically, choose direct deposit, and double-check your personal information to avoid ”errors”.