(FixThisNation.com) – A new Bankrate survey has found that 75 percent of adults are relying on their tax refund to make it through the year. This is at a time when the IRS has warned taxpayers that the refunds might be lower than the ones received last year.
According to the survey, of that 75 percent, 43 percent said that the tax refund was “very important” to their overall financial situation, while 32 percent said that it was “somewhat important.” This is a large increase when considering that a similar post in 22 showed that 67 percent were reliant on their tax refund.
However, this year the tax refund may leave a lot of people hoping for more, as this is the first year when there are no pandemic-related stimulus payments or other tax credits that people may have benefited from in the previous year. In 2021, the IRS gave out the third round of stimulus payments, which amounted to $1,400 per person. This could be claimed by all eligible Americans.
As of Feb. 17, the IRS has issued around 28 million refunds, which is 26 percent more than last year. However, the average refund amount is $3,140 marking an 11 percent decrease from last year.
Ted Rossman, Bankrate senior industry analyst, said that it would be “reasonable” for the tax refund to be smaller this year because all the pandemic-related tax breaks had expired.
The refund is typically given when taxpayers have had too much of their income withheld or they have otherwise overpaid when doing their taxes.
Copyright 2023, FixThisNation.com