YOUR TAX REFUND COULD BE LARGER THIS YEAR – HERE IS WHY IN STORY

Fox News is reporting Americans expecting to receive a tax refund could be in for a pleasant surprise this year.

Taxpayers typically receive a refund if they had too much money withheld and overpaid their taxes the previous year. For many families, the money can be substantial: Nearly three-quarters of filers received a tax refund in 2023, with an average payment worth about $3,176 – down about 3% from the previous year.

But refunds are expected to be noticeably bigger in 2024, with some people receiving up to 10% more than last year, according to Mark Steber, chief tax information officer at Jackson Hewitt. That would amount to a roughly $300 to $400 increase.

“For anybody whose income did not outpace inflation, they should do better,” Steber told FOX Business. “It’s not even voodoo or marketing spin, it’s pretty much just science.”

The bigger refunds are a silver lining of the inflation crisis that ravaged millions of households’ finances last year.

That’s because the IRS annually adjusts the federal income tax bracket and standard deduction; in times of painfully high inflation, the increases are more significant and impactful for taxpayers. In 2023, the tax brackets shifted by about 7.1% – a historic increase that is also higher than the 5.5% earnings increase received by the median worker last year.

“There’s not a lot of good news for the low- and moderate-income people who didn’t keep pace with inflation, and that’s a lot of people,” Steber said. “This is not some outlier group. Those people should see a little better situation on their taxes this year.”

Most taxpayers will have until Monday, April 15, 2024, to submit their returns or request an extension.

The IRS expects to receive more than 128.7 million individual tax returns by this year’s deadline.

To receive your refund within 21 days of filing, the IRS has cautioned you must file your return electronically, ensure that it is accurate and complete, and request to receive the refund via direct deposit.

However, the tax-collecting agency warned that some returns may require “additional review” and take longer to process if their systems identify any errors, if there are mistakes on the return, or if it suspects theft or fraud.

“Once you’re relatively certain that you have all of your tax documents, file as soon as you can so that you can start investing your money,” Eric Bronnenkant, head of tax at online financial adviser Betterment, previously told FOX Business.

“Because, in general, the IRS doesn’t pay you interest on your refunds. So getting that money in your hands sooner is better for sure.”