Tax filers could get a break on their federal returns this year because of inflation

ByJason Knowles WLS logo
Wednesday, March 13, 2024
Inflation could get you a federal tax return break this year
As the 2024 tax deadline approaches, there's some good news: You could get a break on your federal tax return because of inflation.

CHICAGO -- The deadline to file your taxes is just a little more than a month away.

There's some good news for tax filers this year: You could get a break on your federal tax return because of inflation.

Higher costs are still hurting everyone.

"Everything from the grocery store to purchasing just your everyday products to everything just going up. It's out of control," said consumer Richard Herbert.

"It's definitely noticeable, and all of my expenses particularly around child care," added consumer Anna Margaret Goldman.

But there may be some inflation relief when filing your taxes.

Herb Weisbaum, a contributor at the nonprofit, said that because of inflation, the standard deduction is up.

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"Some people, because of this may see a lower tax liability this year. some people who didn't get a raise at all may actually see they pay fewer taxes," Weisbaum said.

Standard deductions reduce your taxable income, so higher deductions could lower taxes and more money in your pocket.

Also ask your tax preparer if you qualify for other deductions.

For instance, if you bought an electric vehicle last year, "You may qualify for the clean vehicle tax credit, which is up to $7,500 a lot of tightening of the rules for that. So it's based on your income, the MSRP of the vehicle when you bought it, and where the vehicle was manufactured, it has to be made in North America and the battery components. But if you bought an EV, you might as well go on the IRS's website and see if you qualify. You might not get the full $7,500, but you might get something," Weisbaum said.

And before you file, check and see if you qualify for free assistance, through the IRS.

"The IRS has a number of ways that you can get free help, and you can also take part in their free file program. If your adjusted gross income, that's the bottom line of your tax return, after all the credits and deductions, is $79,000 or less. You will find this on the IRS website, Free File," advised Weisbaum.

If you are taking advantage of Free File, make sure you go directly to the IRS website. Do not Google search "free tax returns." This could lead you to websites that could scam you.

Lastly, make sure you file electronically to get your refund faster. It's also safer than waiting on a check in the mail.