Taxpayers can expect smaller refunds, some to get none

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The Internal Revenue Service began accepting returns Monday, and experts believe certain people can expect smaller refunds or none at all.

The Advance Child Tax Credit is a significant change, according to a report from local ABC affiliate WEAR-TV.

Those who got payments during the past year via the Advance Child Tax Credit will not have that credit come tax time, which is likely to result in a smaller refund.

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“If they're used to getting a larger refund, they're going to be a little surprised this year because they have already received half of it,” Jean Pliakas of Liberty Tax in East Providence, Rhode Island, said.

Unemployment collected by thousands of taxpayers between January and September 2021 is also taxable, according to the IRS.

Last year, the income tax on up to $10,200 of benefits was waived by Congress, but that is not the case in 2021.

Every cent of unemployment collected is considered taxable income, and that is going to decimate refunds, the report noted.

Many taxpayers will owe money, Pliakas said, and those who hope to collect refunds may be hampered by a pandemic-generated backlog.

“[The IRS is] in charge of getting all these stimulus payments out. Last year, they were in charge of getting all of the advanced child tax credits out,” she said. “It's more work than they can handle, so yeah, they're behind. They are way behind.”

Online options are the fastest way for people to receive their returns, according to Pliakas.

CLICK HERE TO READ MORE FROM THE WASHINGTON EXAMINER

The deadline for filing is April 18.





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