Deseret News: Will my tax return be larger this year?



The IRS claims that the $80 billion in funding it received from the Inflation Reduction Act has led to improved customer service, quicker processing, and new options for taxpayers. As of April 6, the IRS has processed over 100 million tax returns and has provided more than $200 billion in refunds with an average refund of $3,011, a 4.6% increase from last year. In addition, improvements have been made in shorter wait times for help over the phone, more in-person help, and free Direct File services that are being piloted in a dozen states.

Improved IRS Services Thanks to Inflation Reduction Act

The IRS claims the Inflation Reduction Act’s funding injection has resulted in improved customer service, expedited processing, and new filing options. The $80 billion funding boost has seen IRS service reach its highest level in over a decade.

An increase of over 1 million answered phone calls, assistance to an additional 170,000 in-person queries, and 75 million more visits led by the revamped Where’s My Refund? tool are among the notable improvements.

As of April 6, the IRS processed over 100 million individual tax returns ahead of the filing deadline. The agency anticipates approximately 19 million taxpayers will request extensions.

Increased Average Tax Refunds

Since January, the IRS has delivered over $200 billion in refunds, averaging $3,011 per refund, marking a 4.6% increase from last year’s average. “A well-funded IRS is like night and day for taxpayers,” IRS Commissioner Danny Werfel stated in a press release.

Faster Services and More Assistance

The IRS has managed to reduce wait times for phone assistance and increased in-person help opportunities, thanks to expanded hiring and more volunteer sites. The agency is also piloting its free Direct File services in a dozen states, with electronic returns via Free File partners up by over 11%.

Inflation-Based Bracket Adjustments

Despite U.S. income tax rates remaining static since 2017, adjustments can be made based on inflation. A report from The Wall Street Journal suggests that many households could benefit from inflation-based bracket adjustments for the 2023 tax year.

Standard Deductions & Tax Collection

Standard deductions, like earnings brackets, can also be adjusted annually. For 2023, the standard deductions for single filers, heads of households, and married joint filers are $13,850, $20,800, and $27,700 respectively.

In fiscal year 2022, the IRS collected more than $4.9 trillion in gross taxes, processed over 262.8 million tax returns, and issued more than $641.7 billion in tax refunds.

Read More US Economic News

Comments are closed.