Inflation won’t give you a bigger tax refund this year
LINCOLN, Neb. (KLKN) — As inflation pushes prices up, you may be expecting your tax refund to help you out.
But experts say many are unaware of how inflation will impact that.
“I think everybody was on this assumption that there was going to be some sort of a tax relief, but we are not seeing any big difference in any amount of money that people are getting back,” said Ron Elwell with Welch’s Tax Service. “Which is sad because that is the part where you would think you are spending more money.”
Last year, the IRS announced inflation adjustments that allow people to deduct higher amounts of income, but they won’t take effect until next year.
Experts say that this year, people are expected to receive pretty much what they have in the years prior to inflation.
“It didn’t change the tax structure based on the fact that everything else went up on our daily lives,” Elwell said.
There is a way to decrease your taxable income if you spent more on materials for work. You can claim them through itemized deductions.
Some examples are if you spent money on equipment or for your business.
This year, taxes are due on April 18 because April 15 is a Saturday. The next Monday, April 17, is a holiday in the District of Columbia.