HOUSTON — If you are last minute filer, you might be in for a shock this tax day.
The IRS has confirmed in a recent report that tax returns are trending down for most people this tax season. But while many are disappointed, not everyone is in the same boat.
According to analysis from Bank of America, wealthier taxpayers are bucking the trend this year, but that may be thanks to capital losses they can use to balance out any gains for income for the year.
When it comes to everyone else, you know the people that don’t have massive stock portfolios or investments to help balance out their ledger, we may be paying the price for the end of pandemic policies.
READ MORE: The IRS might owe you hundreds of dollars from years ago. You have until July to collect it.
In 2021, millions of households got the second half of their enhanced child tax-credit payouts in their refund. Plus, the earned-income tax credit applied to a larger group of workers. That all went away for our 2022 returns.
That means while last year's average refund amount was more than $3,100, this year was around $2,800. The largest drops came from households making under $50,000 a year. While households making more than $125,000 a year are actually seeing a 5% increase in their refunds.
If you are disappointed with your refund remember some tax experts say it’s actually a good sign because it means you didn’t give the government an interest-free loan last year.