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With the one-month countdown to filing season, taxpayers are flocking to the IRS website to check the status of their refunds.
About 380 million taxpayers visited the agency’s website last week, an 18% increase compared to the same week last year, according to the latest figures from the Internal Revenue Service.
When taxpayers visit the agency’s official website, they are directed straight to “Where’s my refund?” tool. An IRS spokesperson said this is not unexpected, as people search for refund statuses on average of $3,000 or more.
Based on IRS data tracking websites and mobile visits, other popular landing pages include search functionality, general refund information, and forms and instructions. As the IRS continues to process returns and issue payments, website traffic will eventually level off, an agency spokesperson said.
Misconception that the larger the refund amount, the better.
Americans love getting their tax refunds from Uncle Sam, and the bigger the deal, the better. According to the IRS’s latest filing statistics, the average refund amounts to $3,145, an increase of nearly 6% compared to the same week last year.
But experts say large refunds generally mean taxpayers paid too much in a year and gave the government an interest-free loan, which is especially a threat in today’s high interest rate environment.
“If a taxpayer has received a large tax refund in the past few years, this indicates they are withholding too much from their paychecks,” says San Francisco-based CPA and Master of Corporate Taxation. Michelle Hsu told Yahoo Finance.
A refund is a payment of excess taxes and is not a gift from the IRS. It was always the people’s tax.
But as tax refunds have increased, consumer debt levels and borrowing costs have also increased. According to the Consumer Financial Protection Bureau, the average APR for credit cards in 2023 will reach 22.8%, and total consumer credit card debt will increase by $50 billion, or 4.6%, in the fourth quarter of 2023 to $1.13 trillion. USD, and the average cardholder has an outstanding balance of $6,864. .
Rather than receiving a large refund at tax time, “a better use of money would be to reduce your tax withholding, pay off consumer debt, or invest the money in a savings product to earn interest income.” ” said Sue.
IRS provides additional support in final month
The IRS will provide in-person tax assistance at 70 Taxpayer Assistance Centers (TACs) nationwide on Saturday, March 16 from 9 a.m. to 4 p.m.
The Taxpayer Assistance Center can help you with your online taxpayer IRS account, IRS identity theft, payments, refunds, forms and instructions, and updating your Individual Taxpayer Identification Number (ITIN).
Government representatives cannot help with tax preparation, but they can provide resources on where taxpayers can get free filing assistance. Individuals and households can be directed to the Volunteer Income Tax Assistance (VITA) or Tax Counseling for the Elderly (TCE) sites for help preparing their returns.
If you’re looking for free tax software, your agent can help introduce you to the new IRS Direct File program and software affiliated with the IRS for eligible Americans.
In addition to Saturday support, tax centers in all 50 states, Washington DC, and Puerto Rico are available by appointment Monday through Friday from 8:30 a.m. to 4:30 p.m. If it is not available during working hours, you can search for a center near you. Business hours will be extended as many locations are adding resources through April 16, the day after the filing deadline.
The IRS asks taxpayers who plan to visit a center to bring the following documents: a current government-issued photo ID, Social Security or ITIN for themselves and their family members, a letter or notice from the IRS; Two forms of identification and a copy of your tax return. submitted.
IRS staff may also ask for proof of your current address and direct deposit financial information.
Rebecca Chen is a reporter for Yahoo Finance and previously worked as an investment tax certified public accountant (CPA).
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