LEXINGTON, Ky. (LEX 18) — This year, April 18th is the final day to submit individual income tax returns and payments and it is quickly approaching.
"My advice to a tax preparer is to just go ahead and get it done — even if you think you owe," said Lemeka Hawkins, tax preparer and owner of LR Hawkins LLC.
Lemeka Hawkins has more than 20 years of experience.
"I've had the opportunity to do corporate taxes, individual taxes, and my focus currently is on small business," Hawkins said.
She says this year will look more like a pre-pandemic year for tax refunds.
"Things have reverted back to where they were," said Hawkins. "In my opinion, I think it is because the pandemic credits and deductions have ended."
The Child Tax Credit and Earned Income Tax Credit amounts have reverted back to normal.
Newly released IRS data for people who've already filed shows an 11% decrease in the average refund amount. The total amount refunded by the IRS through March 24 was also down 8.7% from this time a year ago.
It means your tax refund amount could be a little less than last year.
Exactly how much difference you'll see will be a very individualized number.
For those who haven't filed yet, Bob Livesay, CPA with the Livesay Group PLLC has some advice. He's been in practice for 55 years.
Livesay says if you haven't started yet and need help, you may have to request an extension, so you don't face penalties because many tax preparers and CPAs are booked and busy.
He says that while you can get an extra six months to file with an extension, money owed will still have to be paid back by April 18th to avoid any penalties.
Livesay says investors who sold portfolios that incurred losses last year may qualify for a reduction in tax liability.
"But if they don't sell that portfolio — it just sits there declining, there's no tax," said Livesay.
He says seniors who work in Lexington can also fill out a form to get as much as $68 back from the city.
Here's a link to that form: https://www.lexingtonky.gov/sites/default/files/2023-01/2022%20211-65.pdf
