Millions of Americans are expected to file their income tax returns this Monday and before the April 15 deadline. It is also expected that there will be a 10% increase in their tax refunds.
Americans are expected to receive a 10% increase in their tax refunds. (Photo: Getty)
10% Increase in Tax Refunds
This tax season, millions of Americans are expected to file their income tax return and are also waiting for their tax refunds. This year, some of the taxpayers will receive 10% increase in their tax refunds because the IRS adjusted the AGI due to inflation.
In a published article in CBS News, a bigger tax refund will be given to Americans after the IRS raised the tax brackets to 7.1%. For those whose income was outpaced by inflation, that could result in a return of as much as 10% more.
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Why You Should Apply Early?
According to a published article in NASDAQ, there are other benefits why your should apply your income tax return early. First, to avoid penalties. Second, to give taxpayers more time to prepare. IRS said, “If you owe tax and don’t file on time, there’s also a penalty for not filing on time. The failure-to-file penalty is usually five percent of the tax owed for each month, or part of a month that your return is late, up to a maximum of 25%.”
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