It should come as no surprise to anyone that the deadline for the tax season of 2023 is almost there. The tax returns of 2022 must be, as mentioned by the IRS, submitted by the 18th of April 2023.
However if one needs more time, they will be able to file for a six-month extension to receive the tax credits, but they would have to apply for it by Tax Day to avoid the penalties. The IRS, according to reports, has already received close to 101 million tax returns, out of which mostly all have been processed. According to the agency, close to 69 million refunds have been initiated as of the 7th of April, with an average payment of $2,878. One of the main reasons why the IRS distributes refunds is simply because the taxpayer paid more than was necessary through taxes.
Tax Credits Will be Available To Those Who Have Filed Taxes In Time
However, one can also assume that the refunds would be generated or increased when the taxpayers end up taking advantage of the tax credits that are available to them. These tax credits are usually divided into two categories- non-refundable and refundable. For those wondering- a tax credit is simply a reduction or a rebate for the taxes that have been paid to the IRS. A fully refundable credit is available to the eligible claimants- regardless of how much tax they have ended up paying. Other forms of refundable credits could have certain conditions attached to them.
A non-refundable tax credit is completely capped at the amount of tax that the claimant has decided to pay. So, if one pays a sum of $1,000 in income tax, then they won’t be receiving more than $1,000 in the form of a non-refundable tax credit.
