GREENSBORO, N.C. — Tax Day is April 18, 2023. Whether you do them yourself or have someone do them for you, if you end up getting a tax refund, there's one question you need to answer.
Should you get your IRS tax refund by direct deposit or a check that is mailed to you? Is there a wrong answer to this question? Technically, no but…
"Mailboxes are unfortunately not as safe as they used to be. So, when somebody asks, what I suggest is I always suggest direct deposit,” said Dottie Pfister from H&R Block.
Nine out of 10 refunds are done by direct deposit according to the IRS. The number of checks is dwindling and for good reason. It can take weeks to get your paper check versus less than a week for direct deposit.
WHY ARE REFUNDS SMALLER THIS YEAR?
The IRS reports average refunds are 11% less compared to last year, primarily due to the end of pandemic-era tax credits.
If you claim child dependents, you'll see the biggest decrease.
“The big change of course is the lowering of the child tax credit, and of course, there's no more gift like we got last year, which was like a big $1,400 to a lot of people,” said Pfister.
Charitable donations also have to be itemized this year. (there’s no more $300 charitable deduction per taxpayer this year along with the standard deduction)
WHAT DOCUMENTS DO YOU NEED?
If you're having a tax preparer do your taxes, you'll have to bring all your documents with you.
What do you need? H&R Block has a checklist you can print off or at least go down to see what pertains to you and your taxes.