LOUISVILLE, Ky. (WDRB) — Tax season has now started and millions of Americans are now preparing their returns for this year.

Consumer Reporter John Matarese has some potential good news about your refund so you don't waste your money. 

Many taxpayers were disappointed last year by smaller refunds than the past several years.

But this year, you could be getting more money back!

Last tax season was a bummer for Jessica McDaniel, who saw her refund shrink substantially. 

"The limits for what you can get on child tax credit have been lowered, so its half normal," McDaniel said.

Karen Short did not even get a refund, with stimulus checks gone.

"No I'm not getting one, I am a single parent, I'm single and my kids are all grown," Short said.

Last year was a tough one for many taxpayers because all those pandemic-era benefits had ended. That meant smaller refunds for many people. 

This year, however, there is some good news — you may be getting a little bit more money back.

The IRS said refunds in 2023 averaged $3,167, down 3% from 2022. 

The loss of the expanded child tax credit was the main reason.

But the IRS estimates that could be 5 to 10% higher this year, as a result of new inflation-adjusted tax brackets and higher standard deduction.

"The good news is the standard deduction is higher now than it was before, adjusted for inflation," CPA Roy Mitchell said.

Mitchell said the earned income tax credit this year is also up which could contribute to larger refunds. 

The only downside is that once again most people will not be able to deduct charitable contributions.

"Charitable contributions are no longer deductible if you don't use itemized deductions," Mitchell said.

But that was always just a small part of the tax refund for most people.

So, the bottom line is that thanks to inflation adjustments, last year's smaller refund should be a little bigger in 2024. 

Finally, the IRS hopes to process most returns on time this year, having worked through the pandemic backlog of the last few years. 

That's good news so you don't waste your money. 

To read more Don't Waste Your Money stories, click here. 

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