Tax Refund 2022 Frequently Asked Questions – Your Doubts Answered
Who does not like to get something back from the IRS? Especially when it is money that averages over $2,000 every year. Tax refunds are great to receive at the end of the tax season. We could all with some extra cash with the house requiring renovation, the car needing an upgrade, the kids getting ready for college, and the prices of everything increasingly daily. But not everyone is that lucky to get a tax refund. And not everyone gets $2,000 as a refund. There is a complicated process that runs underneath that restricts refunds only to a limited few.
Know everything you need to about tax refunds here in this post. Clear your doubts and plan your taxes accordingly.
1. Will I get a tax refund from the IRS in 2022?
The best answer is – it depends on a lot of nuances of your tax return. Taxpayers who have paid more in taxes over the years usually get tax refunds if the money they already paid is greater than what they owe. Tax credits and deductions come into play to reduce the net taxable income during the tax season and that determines whether you will get a refund or pay extra to the IRS in taxes.
In 2022, however, you stand a chance of receiving a refund. Tax credits like Child Tax Credit and Child and Dependable Care Credit have both been increased for the year 2021 which means you are eligible to reduce your tax bill more. If you apply your tax credits and deductions right, you may get a tax refund in 2022.
2. Is there a way to increase my tax refund?
Yes, there are numerous ways in which you can increase the amount of your tax refund. One, you can file your taxes jointly with your spouse, if you are married, which increases your standard deduction to $25,100. You also become eligible for numerous tax credits and deductibles not available to single filers. As a single filer, however, you can claim new credits like Recovery Rebate Credit in 2022 to increase your tax credit payable by the IRS. Do your research before filing your taxes and claim every tax credit and deductible you are eligible for.
3. How long will it take to get my tax refund after filing my return?
The IRS says that it takes 21 days to process your tax refund from the day you submit your tax return. However, this is not a hard number that the IRS stands by every time. Some tax refunds take time to process given the details you have claimed in your return, the credits and deductibles you have claimed, the documents you have shared with the IRS, and other such factors. You can still expect to get your refund within 4 to 8 weeks. In case the refund is delayed further, you can always log into your IRS account and verify the refund status.
4. Will the IRS tax my refund next year?
No, tax refunds are usually non-taxable. Even the tax credits you get from the IRS are non-taxable even when that is free money coming from the Federal government. The net tax refund is not your income. It is merely the extra tax you paid throughout the year to the government. If you get a refund in 2022, you can safely leave that amount out while filing your taxes in 2023.
5. What should I do with the tax refund money?
Speaking simply, it is your money to spend. You can do almost anything with the tax refund you get from the IRS. But the best way to use your tax refund cash is to pay the down payment for financing a used car. Used cars in Greenville are an asset for you and your family. A personal vehicle can simplify your life in so many ways. At Family Auto of Greenville, you can get started with our bad credit financing with just $500 as down and your tax refund money will be enough to get you a quality used car.
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