Up to $2,878 worth of 2023 Tax Refunds are being issued by the Internal Revenue Service (IRS) this month. In this article, read and find out how much has changed since the tax refunds from 2022!As of April 7, the Internal Revenue Service (IRS) has issued an average amount of $2,878 in 2023 Tax Refunds, which is less than the $3,175 worth of tax refunds in April 2022. This amount is a decrease in tax refunds by 9.3% from last year. Furthermore, the IRS has also distributed around 69.1 million refunds this year, which is a decline by 1.3% from the 70 million refunds disbursed in 2022.
According to Picchi, in addition, the IRS has also distributed 2023 Tax Refunds for 68.8% of the processed returns so far, which is a decline from the 70.2% in 2022. Since the 2023 Tax Season has started last January 23, the average 2023 Tax Refunds have been gradually decreasing compared to what was received in 2022. Reportedly, the decrease may be caused by the termination of several tax breaks that were provided due to the COVID-19 pandemic.
Tax Breaks that Affected the 2023 Tax Refunds
According to Lee, for this year’s tax season, the Earned Income Tax Credit (EITC), Child Tax Credit (CTC), and Child and Dependent Care Credit are brought back to the levels before the COVID-19 pandemic began. This means for the EITC, the maximum amount that single tax filers without any children can receive $500, which is a decline from the $1,502 in 2022.
For the CTC, the maximum amount that taxpayers can receive is $2,000 per eligible child, which is a decline from the $3,600 in 2022. Lastly, for the Child and Dependent Care Credit, the maximum amount that taxpayers can be received is $2,100, which is a decline from the $8,000 in 2022.