It’s tax time – and some people are already getting their refunds. And while some people are happily spending refunds that were thousands of dollars more than what they anticipated, others are faced with paying a lot more than they had expected.
Most people know what to expect when the IRS tax deadlines roll around each year. Except, this year, the Democrats have been playing around with tax deductions in response to the pandemic. It’s leaving surprises for Americans, both good and bad.
The average refund has been reported to be up by 10 percent. However, many low-income families feel as though they’re winning the lottery. Their refunds can be in the five digits – and may even rival their annual income.
The number of taxpayers getting paid is down, however. Much of this is because of having to pay back things that were offered as “temporary relief.” This includes the Child Tax Credit that was offered for the last six months of 2021. Additionally, many who had earned unemployment benefits are now being forced to pay the taxes on that money.
For those who are getting an impressive refund, it could mean they’re willing to thank those who made it happen – the Democrats.
There’s the opposite, too. For those who have had to pay more and still deal with the rise in inflation, they’ll be ready to blame those who made it happen – the Democrats.
It’s important to see why there are some people getting more money back. After all, the Democrats keep saying that people are hurting for money – and that may not actually be the case if people are receiving thousands of dollars back from the IRS as a refund.
Those with low or no income are getting the most refunds. And those with dependents are also hitting the jackpot.
For those who qualified for a stimulus but weren’t given a payment, that can be added to the tax refund as well.
According to IRS data, total payments are $27 billion ahead of where they were last year. And Goldman Sachs estimates that the Treasury could be paying a total of $50 billion extra in refunds in comparison to last year.
It’s not uncommon for some people to get payments of $20,000 – or even more.
It’s why so many people have been scrambling to get their tax returns done. And advocates are trying to get those with low incomes to file. Even those who don’t typically have to file may want to as it can result in more money for them.
Of course, as with all things that Democrats promise, it’s temporary. The expanded benefits are only for the 2021 tax year. Those getting excited about big payments coming from the IRS will be sad to know that it’s likely not going to be that way next year – unless the Democrats figure out some way to extend the benefits. Considering that many Democrats are losing their seats in the midterms, it’s unlikely to see any kind of extensions.
It’s a bigger mess than usual. And you can bet that many of the low-income families won’t use the money that they’re getting back responsibly. It’s why you can find lines to get into the Nike stores and even the Louis Vuitton stores. People will waste money instead of trying to improve their lot in life. It’s why the guaranteed income programs being tested in California aren’t working, either.
So, if you’ve filed your taxes, you’re likely part of one extreme or another – getting a lot back or paying a lot more. We hope it’s the former, but if it’s the latter, at least take heart that it probably won’t be that bad next year.