Tax season is underway and many of us are now preparing our W-2's and other forms.
For many taxpayers, it is a time of dread.
But here is some good news: Some changes this year could mean a bigger refund for many people.
We visited the Liberty Tax office in Norwood, Ohio to learn more.
Clients like Teresa Warren prefer having a helpful expert to guide them through the latest changes.
"I didn't want to do it myself, so I decided to come check them out," she said.
IRS changes that could boost refunds
Staffers were explaining to her the changes this year that could mean more money in her pocket.
"The standard deduction is bigger than ever," franchise owner Gina Pinto said.
Watch as Gina Pinto explains refund changes this year:
She said she's already seen people get larger refunds because of this.
"Yes," she said. "Bigger refunds because the taxable income is lower."
The government adjusts tax brackets and the standard deduction annually to keep up with inflation — perhaps one of the few good things to come out of all the inflation we've been dealing with the past few years.
This means the government has less money of yours to tax.
According to Experian:
- For singles, the standard deduction rises to $14,600 this season, a $750 increase over last year.
- For married couples filing jointly, the standard deduction rises to $29,200, a $1,500 increase in your deduction.
"It used to be $27,700 last year, so that is a big increase," Pinto said.
How much more you may see
That doesn't mean you will receive an extra $1,500, however.
Experian says a married couple filing jointly, in the average 22 percent tax bracket, could see an extra $300 to $400 in their refund check.
Which is great news in these inflationary times, so you don't waste your money.
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