Will My Tax Return Increase This Year? – Deseret News

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The IRS reports that an $80 billion funding increase through the Inflation Reduction Act has led to significant improvements in customer service and processing speed, with over 1 million more taxpayer calls answered and 170,000 more people helped in person. The agency has processed over 100 million individual tax returns and delivered more than $200 billion in refunds with an average refund of $3,011, a 4.6% increase from the previous year. Furthermore, income tax rates have stayed the same since 2017, but inflation-based adjustments to income cutoff points could result in smaller tax bills for many households, and the IRS collected over $4.9 trillion in gross taxes, processed over 262.8 million tax returns, and issued over $641.7 billion in tax refunds in fiscal year 2022.

Improved IRS services thanks to the Inflation Reduction Act

The IRS has reported improved customer service, quicker processing times, and new filing options due to the funding it received from the Inflation Reduction Act. The deadline for filing completed 2023 returns or requesting extensions is fast approaching, with millions of taxpayers rushing to meet the Monday deadline.

The IRS’s service levels have exploded thanks to an $80 billion funding boost part of a comprehensive package endorsed by Congress and President Joe Biden in 2022. The IRS has seen significant improvements in crucial areas.

As per a recent press release, the IRS has answered over a million more taxpayer phone calls this tax season than last year, helped an additional 170,000 individuals, and experienced a surge in IRS.gov visits, driven by the revamped Where’s My Refund? tool.

Projected filing numbers and refunds this tax season

As of April 6, the IRS had processed over 100 million individual tax returns and expects millions more by the Monday deadline. They’re also projecting that around 19 million taxpayers will file extensions, due on Oct. 15.

Over $200 billion in refunds have been delivered by the IRS since the January tax season, with an average refund of $3,011, a 4.6% increase from April’s average of $2,878 last year.

Further improvements fueled by the Inflation Reduction Act

Thanks to the IRA funding, the IRS has reported shorter wait times and more help opportunities. The agency is also piloting its free Direct File services in 12 states, and the number of e-returns processed by its third-party Free File partners is up over 11% this tax season.

According to a Wall Street Journal report, inflation-based bracket adjustments for the 2023 tax year could result in lower tax bills for many U.S. households.

In 2023, single filers with incomes of $13,850 or less and joint filers with incomes of $27,700 or less will pay the lowest tax rate of 10%. Taxpayers in the highest earnings bracket will be taxed at a rate of 37%.

The IRS reported collecting over $4.9 trillion in gross taxes in fiscal year 2022, processed more than 262.8 million tax returns, and disbursed over $641.7 billion in tax refunds.

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