Complying with tax returns in a timely manner has its advantages. In addition to being able to have greater peace of mind regarding personal finances, In some cases refunds can be obtained. The bad news for Americans is that In 2024 it is very likely that the amounts they receive will be lower.
Currently, millions of Americans are dealing with debt from all the purchases they made in December, the peak shopping season. Reason why There are those who wait for tax refunds every year to be able to have a more comfortable financial situation. However, Tiffany Watson, CEO and tax advisor at All Aboard Financial, based in Tampa, Florida, is warning that smaller amounts should be expected for 2024.
The reason for the above is that, as he explained, there has been a recovery from the pandemic, in addition, the child tax credit is decreasing, but the standard deduction has increased. “It may balance it out, but not by much. Taxpayers should expect to receive smaller refunds this year.”
Furthermore, it has been shown that, despite refunds, Rarely are the amounts used to pay debts, since once these amounts reach the pockets of Americans, the money is usually used for end-of-year expenses. The above because, generally, Near the Christmas season is when resources are deposited to taxpayers.
Given the situation, Watson's recommendation is to avoid overspending and not use the credit card frequently, in addition to Set correct financial goals throughout the year. “Make sure you have a tax plan, so you don't expect a refund or pay the IRS, that is the goal to reach a zero tax obligation,” the expert shared.
Pandemic recovery may not be the best news for some Americans
According to The College Investor, a personal finance and investment company, as the United States returns to normal after the pandemic Many programs that boosted tax deductions in the last two years are being discontinued. For this reason, most taxpayers will see a much smaller tax refund in 2024.
According to information from Internal Revenue Service, (IRS for its acronym in English), the average tax return last year was US$3,039, more than US$400 higher than the previous year. However, the stimuli that had been promoted due to Covid-19 are being finalized, so many taxpayers will have to pay more.
What's more, according to the financial company, Many Americans May Realize They Owe Taxes when they had never faced that situation before. Due to the current situation, the recommendation is to have all the papers in order and file the tax return as soon as possible, or seek advice from specialists to be able to comply in a timely manner.
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