SPARTANBURG, S.C. (WSPA) – The deadline to get your taxes filed is April 18 and financial experts are saying the refund checks will be lower than they have been in the last few years.
Wofford College Business and Finance professor Dr. Russ Sandifer said a big reason is because of the stimulus checks that were given out during the pandemic.
“The stimulus money has gone away,” said Dr. Sandifer.
For taxpayers with children, the “childcare tax” has also gone down from $3,600 to $2,000 which Dr. Sandifer said could reduce refunds across the board.
“These refund checks are not going to be as large as they were last year.”
Dr. Sandifer said if someone isn’t sure what they will get back or what they could possibly owe they can use an estimation tool like TurboTax Tax Caster to get a rough estimate.
“You can go in there and put in most of the things you know and get a pretty good sense of where you stand,” he said.
There is good news said the business and finance professor.
“From the 2021 tax brackets to 2022 the IRS is taking into account inflation and the brackets have moved up three percent.”
What that means is when you file, your marginal income will be taxed at a lower rate.
“All of those brackets are going up three percent this year and seven percent next year,” said Sandifer.
Dr. Sandifer suggests that if you do get a refund check to put it away and save it for a rainy day.