The tax agency’s reporting season ended March 24, 2023, with the average reimbursement amount significantly lower than last year.
The IRS had issued a warning that this would likely be the case this year, primarily due to the fact that the US government did not authorize stimulus payments in 2022.
IRS Stimulus Check 2023
IRS data from the week ending March 24, 2023 indicate that the average tax refund issued to taxpayers this year is $2,903. As of the week of March 25, 2022, the average refund for the prior tax year was $3,263, which may seem substantial.
Consequently, the average refund amount has decreased by 11% compared to the same period last year, a significant decline.
Despite having issued a greater total amount of refunds to date, the IRS issued $172.263 billion less in reimbursements in 2023 than it did in 2022.
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American Rescue Plan Act
Refunds are currently being processed for the 2022 tax year, which received no federal stimulus funding. In contrast, several federal stimulus programs were made available in 2021, including a $1,400 reimbursement for adults and dependents authorized by the American Recovery and Reinvestment Act and an expanded Child Tax Credit that provided parents with up to $3,600 per child.
These programs were implemented when 2021 tax refunds were issued to taxpayers.
The American Recovery and Reinvestment Act enabled many taxpayers to claim both the $1,400 stimulus payment and the enhanced Child Tax Credit, resulting in many Americans receiving larger tax refunds.
If Americans did not receive the advance reimbursement earlier in the year, they were still eligible to receive the $1,400. In addition, only half of the enhanced Child Tax Credit was distributed prior to tax season, with payments made on a regular basis from July to December, allowing those who qualified to claim the remaining half, as reported by the fool.
Read more: How big is the child tax credit in 2023 and how to qualify?
