PEORIA, Ill. (WMBD) — Tax refunds will be lower than normal in 2022, and one local president of a tax preparation company tells consumers what to expect this year.
William Sharpe, president of Total Income Tax on Forrest Hill Ave in Peoria, said not to expect a refund until you have it. He said when the Internal Revenue Service (IRS) shut down in 2020, a large percentage of its staff did not come back, making it difficult for people to process refunds quickly.
Some people received advances on their child tax credit in the summer months of 2021, so Sharpe said if there were any irregularities, it could cause a longer wait for a tax refund.
He also said child tax credits given out seemed like an additional stimulus, as a way of giving an advance on the child tax credit. But, it is possible the IRS gave too much of a refund back. This would mean that some people would have a balance due on their tax refund instead of being given money back.
Sharpe said, “Keep your expectations low this year. If you’re used to getting let’s say $5,000 or more, don’t expect that until you file your taxes. And secondly, after you file them, if the number is the same, don’t anticipate that refund until it literally is in your hands or in your bank account.”
He explained that the Child Tax Refund is only one part of the possible delay and to ultimately not have high hopes.