CORPUS CHRISTI, Texas — It is not often that you equate the IRS with good news, but that may be the case for those who are planning to file a federal tax return this year.
It seems that the IRS has taken note that inflation has been at a four-decade high, and those higher prices everyone has been battling bring two important changes that should benefit most taxpayers.
First, there are wider tax brackets.
Stacy Trevino, the owner of Danny’s Income Tax Service, said tax brackets were adjusted up by a record 7%. That means that if your income stayed relatively flat, you could end up in a lower tax bracket, with the lower tax rate that comes with it.
“If somebody made the exact same amount as last year, they’re going to see their tax bill be a little lower because they’re not going to reach that higher tax bracket,” Trevino said.
Second, there are higher standard deductions.
They, too, were adjusted to account for inflation, and that means that more of your income will escape the taxman.
“The ‘Married Filing Jointly’ standard deduction is $27,700, which is an increase from last year,” she said. Trevino added there here are also jumps for those who file as ‘Single,’ ‘Head of Household,’ or ‘Married Filing Separately.’
According to the IRS, nearly 90% of American taxpayers take the standard deduction.
One other thing to remember is that criminals who want to steal your refund are getting more creative all the time. If you get a notice from the IRS, do not be afraid to get help in determining whether it is real.
“Taking your notices to someone who knows what they are doing and calling the IRS (for verification) is really the best way to go,” Trevino said.
It may also be a good idea to go ahead and file your taxes early. Once the IRS has your information, no one will be able to try to steal your money by filing a fraudulent tax return with your name on it.
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