IRS Data Reveals Americans To Have Smaller Stimulus Checks in 2023

The average reimbursement amount is significantly lower this year than last year, according to data from the tax agency’s reporting season that ended the week of March 24, 2023. The IRS had issued a warning that this was probably going to be the situation this year, largely because the US government did not authorize stimulus payments in 2022.

Stimulus Check 2023

The mean tax refund given to taxpayers this year is $2,903, per the IRS statistics for the week that ended March 24, 2023. Although this may seem like a sizable sum, the average refund during the previous year, as of the data’s release for the week of March 25, 2022, was $3,263. Accordingly, the typical refund amount is down 11% from the same period last year, which is a significant decrease. Despite issuing a higher total amount of refunds to date, the IRS only issued $172.263 billion in reimbursements in 2023 compared to $188.687 billion last year.

American Rescue Plan Act

Refunds are currently being processed for the 2022 tax year, which saw no stimulus money from the federal government. In contrast, several federal stimulus programs were made available in 2021, including a $1,400 reimbursement for adults and dependents authorized by the American Rescue Plan Act and an expanded Child Tax Credit that gave parents up to $3,600 per child. These programs were implemented when taxpayers were receiving refunds for the 2021 tax year.

The American Rescue Plan Act allowed many people to claim both the $1,400 stimulus payout and the enhanced Child Tax Credit when submitting their returns, which led to many Americans getting larger refunds. If Americans didn’t get the advance reimbursement earlier in the year, they could still collect the $1,400. In addition, only half of the enhanced Child Tax Credit was distributed ahead of tax season, with payments made regularly from July through December, allowing anyone who qualified to claim the remaining half reports fool.

See Also:  IRS: Don’t miss this important Oct. 17 tax extension deadline

Related Stories:

Stimulus 2023: Will Americans get more checks next year? 4th Stimulus Check: Which States Are Sending How Much Amount In April 2023 Stimulus Update 2023: Smaller Refunds May Be Given To Indiana Taxpayers This Filing Season March 2023 Relief Checks: South Carolina, Maine, New Jersey among states sending payments 4th Stimulus Update 2023: New Monthly Relief Checks Will Be Available For Americans Stimulus Checks 2023: Are You Among the Millions of Americans Expecting Funds? Stimulus 2023: These 5 American States Sending Millions Of Checks; Are You Eligible? Stimulus Check Update 2023: Will The IRS Send More Checks