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The Department of Education says it fixed a problem with outdated inflation figures in the new FAFSA, which may affect the timing of financial aid offers.
This is just the latest complication in a rollout that has already proven problematic.

The U.S. Department of Education says it recently updated a key part of the new Free Application for Federal Student Aid formula, but, as a result, colleges won’t receive FAFSA applicant information until early March, instead of late January as initially estimated.
“Our ‘North Star’ here is trying to make sure that students get the help they need for college,” a senior Education Department official said on a press call Tuesday, adding that the “major” undertaking to update the form was imposed by Congress without additional funding or resources.

The new, simplified FAFSA soft launched Dec. 30 after a monthslong delay. Since then, the 2024-25 form has been plagued by problems.
“These continued delays, communicated at the last minute, threaten to harm the very students and families that federal student aid is intended to help,” said Justin Draeger, president of the National Association of Student Financial Aid Administrators.
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One of the issues has been specifically related to the new FAFSA’s affordability calculation, called the “Student Aid Index,” which estimates how much a family can afford to pay. At launch, the new FAFSA relied on old consumer price index figures from 2020, before the recent runup in inflation.
Just last week, the Department of Education said it planned to update this part of the new FAFSA formula, which will mean an additional $1.8 billion in aid for college-bound students this year.

That update has now been completed, the Department of Education said Tuesday, and, as a result, 1.3 million students will see larger Pell Grants, a type of aid available to low-income families.

It was initially unclear whether making those numbers current would cause further delays. The Department of Education previously said that once students successfully submit a completed FAFSA form, that information will be sent to schools in late January.
Now, the Department of Education says batches of FAFSA information will go out in the first half of March. “Updating the tables is a factor on the timeline,” a senior Education Department official said Tuesday.
“With this last-minute news, our nation’s colleges are once again left scrambling as they determine how best to work within these new timelines to issue aid offers as soon as possible — so the students who can least afford higher education aren’t the ones who ultimately pay the price for these missteps,” Draeger said.
Schools are waiting on the FAFSA information to begin building financial aid packages and to give students and families enough time to review and compare financial aid offers.
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Housing is typically one of the biggest expenses in someone’s budget.
Sometimes, it’s possible to pay rent with a credit card — but experts say it’s risky.
“This is a very large payment. It could rapidly spiral in terms of additional interest rate costs,” said Susan M. Wachter, a professor of real estate at The Wharton School of the University of Pennsylvania.

Svetikd | E+ | Getty Images

Housing is typically one of the biggest expenses in someone’s budget, and it’s natural to wonder about the best way to pay that bill.
For renters, sometimes it’s possible to pay with a credit card. While you could earn rewards and build credit by doing so, experts say it’s typically not a smart move.

“This is a very large payment. It could rapidly spiral in terms of additional interest rate costs,” said Susan M. Wachter, a professor of real estate at The Wharton School of the University of Pennsylvania.
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Your landlord might not even agree to accept payment via a credit card, as they may be subject to paying processing fees.
They simply “may not want the hassle,” said Matt Schulz, senior credit analyst at LendingTree.
Here are three things to consider before you charge your rent payment to a credit card.

1. Processing fees chip away the rewards

An appeal of paying your rent with credit might be earning rewards on that expense. The typical cash back card offers 1.5% to 2% back.
But most third-party payment services and large property management companies charge credit card processing or transaction fees. Those can run between 1% and 3% of the rent charge.
“The cost of that fee may eat into the value of any rewards you might earn, so it might not even be worth it,” said Melissa Lambarena, a credit cards expert at NerdWallet.
The median apartment rent nationwide was $1,964 in January, according to Rent.com. That would generate nearly $60 in monthly credit card processing fees, or more than $700 over the course of a year.
Make sure you review the terms before you decide which card to use. Processing fees vary, and there are some cards that do not charge them, such as the Bilt Mastercard.

2. You run the risk of accumulating interest

If you do not pay the card balance in full by the end of the statement period, you risk adding interest charges on top of your monthly rent.
“Don’t pay rent with a credit card if you’re going to be charged interest,” said Ted Rossman, an industry analyst at Bankrate.
Due to inflation, more people have been racking up and carrying debt, whether from credit cards or buy now, pay later loans. High interest rates can make some of these balances harder to pay off.
The average interest rate for all credit cards by the end of 2023 was 21.47%, the highest annual percentage rate since the Federal Reserve began tracking in 1994, according to LendingTree.

3. Your credit score may dip

Using credit cards for large transactions can affect your credit utilization rate, the ratio of debt to total credit, which weighs heavily into your credit score, Lambarena explained.
“Putting rent on your card’s credit limit could hurt your credit score,” she said. “It’s usually recommended by experts not to use more than 30% of your amount of available credit.”
If you want to put the rent payment on your card, a good buffer is to make sure you have enough available balance. You can ask for a credit limit increase from your card issuer to minimize the effect to your score.Don’t miss these stories from CNBC PRO: More

Finding extra money to set aside for cash savings is a difficult goal for many Americans.
Financial advisors say they use these tips to help people build better savings habits and find extra cash in their budgets to set aside.

Jgi/jamie Grill | Tetra Images | Getty Images

If you’re like most people, you may not have an emergency savings fund.
It’s not necessarily our fault, experts say, as our brains are programmed to focus on our needs today.

“We’re just not wired to save,” Brad Klontz, a certified financial planner and expert in financial psychology and behavioral finance, recently told CNBC.com.
He and other financial advisors typically recommend having at least three to six months’ living expenses set aside in case of an abrupt change in income or unexpected event.
Yet, research shows Americans’ cash balances often fall short of that goal. A new Bankrate survey released last week found just 44% of Americans could pay for an unexpected $1,000 expense with savings.
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Changing our instincts to spend today requires us to build new habits.

Klontz said he prefers to catch young professionals as they’re starting out, when they go from having little income as a student to feeling wealthy. At that point, it doesn’t feel like as much of a stretch to set aside 20% of your income toward retirement and 5% toward an emergency fund.
“It’s great if you can catch it early, because then it’s not painful at all,” said Klontz, who is a member of the CNBC Financial Advisor Council.
“But when you’re already stretched to the max, which most Americans are, [saving] becomes a painful exercise,” he said. “And that’s why many, many people don’t have it.”
Financial advisors often see this barrier to savings with their clients and have their own tactics for nudging clients to set aside more cash and free up flexibility in their budgets.

1. Start with building a habit

When interest rates were low, it was sometimes a tough sell to get clients to set aside more cash, admits Marguerita Cheng, a CFP and CEO of Blue Ocean Global Wealth in Gaithersburg, Maryland.
“[Now] savers are earning more interest, so it’s a lot more compelling,” said Cheng, who is also a member of the CNBC FA Council.
Still, reaching the minimum three-month threshold for emergency savings can be discouraging because it is so high.

To help combat that, she encourages clients to focus on building a habit, not on the amounts they initially start setting aside.
For example, a family may start by setting aside $10 every time the paycheck comes in.
“It sounds small,” Cheng said. “But it actually works because they can achieve that goal.”
Then, when other balances are paid down, such as a credit card or car loan, Cheng said she advises clients to put that extra money to increase their savings contributions. That way, $10 per paycheck may increase to $25, $50, $100, $200 or more, she said.
There can be some flexibility. For example, if a $425 monthly car payment comes to an end, she tells clients to put half of that sum in savings.
“It’s ok if you spend half to enjoy your life,” Cheng said she tells clients. “But what I need you to do is save the other half … so that you can enjoy your life in the future.”

2. Trim spending where you can

To free up more money to devote to savings, it also helps to cut back on discretionary spending.
Two big culprits advisors say they often see taking cash away from clients’ budgets are dining out and entertainment costs.
“The big one is cable,” said CFP Cameron Valadez, partner at Planable Wealth in Riverside, California.
By switching from a traditional cable plan that costs $250 per month to an online provider, it might be possible to cut that bill to $65 or $70 per month — extra cash that can be used to boost emergency savings, he said.

3. Revisit your insurance coverage

One monthly cost many people do not pay enough attention to is insurance, including home, automobile and other policies, according to Valadez, who is also host of the “Retired-ish” podcast.
To save on those policies, it helps to shop carriers more often, such as once a year, to make sure you’re getting the best deal, he said.
“Most people get their homeowners insurance when they buy their home, and they never look at it again,” Valadez said. “And that’s a huge mistake.”
Bundling home and auto insurance may be another way to save, he said.

In addition, policyholders may find extra savings by seeing if their current or prospective insurance carriers will offer discounts, such as for workers in civil servant positions. This may also apply to your homeowners policy if you’ve made upgrades that qualify, such as deadbolt locks, an alarm system or fire sprinklers, Valadez noted.
Once you have some emergency cash set aside, you may want to consider increasing your deductibles on these policies, which can reduce your monthly payments. But be prepared to pay a larger upfront sum if an emergency does occur, Valadez said.
By increasing your homeowners policy deductible from $1,000 to $2,500, for example, you may be able to shave 10% to 12% on your annual costs, he said.
Importantly, before making any policy changes, it is crucial to consider whether you can still financially withstand a devastating event, Valadez said.Don’t miss these stories from CNBC PRO: More

TikTok has become one of the most popular sources for financial tips and advice, particularly among Generation Z.
However, “finfluencer” content often lacks sufficient disclosures, which can make it hard to tell if the information you are getting is accurate and unbiased.
Only 20% of the finfluencer content that contained investment recommendations included any form of disclosure, the CFA Institute found.

Between girl math, loud budgeting and cash stuffing, the trendiest financial advice is increasingly born on TikTok.
That has helped financial TikTok, also known as FinTok, take off.

Now it’s one of the most popular sources for financial information, tips and advice, particularly among Generation Z. The hashtag #FinTok, representing just the financial TikTok community, has more than 4.7 billion views on the platform.
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In fact, Gen Zers are nearly five times more likely to say they get financial advice — including stock tips — from social media than adults in their 40s or older, according to a CreditCards.com report.
Young investors, especially those ages 18 to 25, look to so-called “finfluencers” for money-saving, or money-making, wisdom, other research also shows.
With less access to professional advisors and a preference for obtaining information online, Gen Zers are more likely than any other generation to engage with finfluencer content on TikTok, YouTube and Instagram, according to a recent report by the CFA Institute.

Finfluencers appeal to Gen Z investors because they produce educational and engaging content that is instantly accessible and, even better, free, the report found.
“Finfluencers now play an increasingly significant role in educating young people about finance,” said Rhodri Preece, a certified financial advisor and senior head of research at the CFA Institute.
“However, our research shows that finfluencer content often lacks sufficient disclosures, which can hinder the ability of consumers to evaluate the objectivity of the information, and some investors may be unaware when and how finfluencers are being paid to promote financial products,” he added.

The downside of FinTok

Until there is more oversight, the CFA Institute advises consumers to look into a finfluencer’s qualifications as well as potential financial motivations, and cross-check any information offered online.
To verify a certified financial planner’s background, go to the CFP Board’s website. Brokers and brokerage firms can be looked up on the Financial Industry Regulatory Authority website and investment advisors can be checked out on the U.S. Securities and Exchange Commission’s website.
For other professional designations, go to the FINRA page that lists them, which includes links to the designation organizations.

The upside of FinTok

Aside from investment or tax advice, FinTok can be incredibly helpful when it comes to tackling challenging financial topics from paying down debt to compound interest and saving for long-term goals, other experts say.
“The average American didn’t learn the basic tools in school or from their parents,” noted Michael Hershfield, founder and CEO of Accrue Savings. “That information is power,” he said.
For example, TikTok’s latest “loud budgeting” trend aims to encourage consumers to consciously stop overspending and recognize their economic limitations. That type of financial education is key at a time when most Americans say they are living paycheck to paycheck.
“Social media is a cancer but there’s good that can come from it,” Hershfield added.
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An estimated 7 out of 10 people will require long-term care in their lifetime, according to a report from Health and Human Services.
About 38 million family caregivers in the U.S. provide unpaid care valued at about $600 billion a year, according to AARP.
Medicare provides very limited coverage for long-term care — and it is vital to check your plan to find out what, if any, services may be covered.

Maskot | Maskot | Getty Images

People living longer and in poor health has become a costly trend. An estimated 7 out of 10 people will require long-term care in their lifetime.
The median cost for a private room in a nursing home is more than $100,000 a year — and it’s $60,000 or more a year for a home health aide, according to a Genworth survey. The median cost for an assisted living facility is $54,000.

“In some cases, residents and their families don’t know their total costs until they receive their monthly bill,” Sen. Bob Casey, D-Pa., who chairs the Senate Special Committee on Aging, said in a hearing Thursday on costs and transparency in assisted living facilities.
“These substantial costs and hidden fees make it nearly impossible for older adults and their families to accurately budget for long-term care,” he added.
The alternative — caring for aging family members on your own — can also come with hefty expenses.
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About 38 million family caregivers in the U.S. provide unpaid care valued at about $600 billion a year, according to a 2021 AARP report. That figure doesn’t include out-of-pocket costs related to looking after a loved one. 

“The average family caregiver spends about 26% of their income [on caregiving activities], which nationally averages out to about $7,000,” said AARP’s family and caregiving expert Amy Goyer, referring to the 2021 AARP analysis. “Some spend much more and some spend much less,” depending on their location and the care they provide, she added.
Knowing a few key terms can help you understand the services an aging parent or relative may need — and plan ahead for how to afford them.
Here are five essential terms you should know: 

Activities of daily living

Long-term care involves various services to meet a person’s health or personal care needs when they can no longer perform everyday activities independently and require assistance. These everyday tasks are often called “activities of daily living” — and can include bathing, dressing, eating, taking medications, using the bathroom and transferring from standing to a chair or bed. 

Continuous care retirement communities

There are many choices for where your loved one can live as they grow older and receive long-term care when needed. “Aging in place” while living at home or going to a nursing home are not the only two options. 
“Not everyone is going to qualify for nursing home care — not everybody needs it,” said Abbe Udochi, founder and CEO of Concierge Healthcare Consulting, a New York-based geriatric care management practice. “Nursing home care is like living in a hospital … you’re going to find people with serious functional issues and cognitive issues.” 
Continuous care retirement communities run the gamut and can be an alternative to aging in one facility or group of facilities. “The idea is to have these all on the same campus so that you can go between the levels of care as you need,” said AARP’s Goyer.

Starting with “independent living,” older adults can live in a house, condo or apartment and receive several services — two or three meals daily, housekeeping and/or laundry services. 
When they need more care, they can move to “assisted living,” where they may get help with some activities of daily living, such as bathing, dressing or eating. The level of assistance can vary and costs rise as more help is needed. 
The highest level of care is “skilled nursing care” for those who are chronically ill or disabled and can no longer care for themselves. This could be a particular unit or nursing home within the community. Some communities also offer “memory care” units or facilities for residents with dementia or Alzheimer’s disease, providing more secure and specialized care. 

Within these communities, costs can vary greatly depending on the type of care and geographic location.
Some continuing care residential communities offer a monthly rental option. Others require residents to “buy in” by paying a sizeable entrance fee — more than $442,000 on average, according to the National Investment Center for Seniors Housing & Care. Then they refund a percentage of that fee when the resident leaves the community. Monthly fees may also be charged. 
Within these communities, average monthly rent for independent living is about $3,900, assisted living costs about $6,700 a month, and memory care costs about $8,400 a month, according to the National Investment Center.

Medicare and Medicaid

When it comes to paying for long-term care services and facilities, many people believe that Medicare will cover the cost, as long as you’re 65 and older and have that federal health insurance. They’re wrong. 
Medicare provides very limited coverage for long-term care — and it is vital to check your plan to find out what, if any, services may be covered. Some Medicare Advantage plans may cover specialized care, including skilled nursing, respite and hospice care.  
Medicaid pays for most long-term care services — but only for people with low incomes and little savings. 

Long-term care insurance

Depending on the plan, long-term care insurance pays for services from at-home care to assisted living, memory care, skilled nursing care, and hospice.
“There are long-term care insurance policies that will pay for care once you are unable to perform two of six daily living activities without assistance, such as bathing or showering, dressing, getting in and out of bed or a chair, walking, using the toilet and eating,” said certified financial planner Ivory Johnson, founder of Delancey Wealth Management in Washington, D.C. 
Long-term care insurance may have annual premiums that increase over time or may be included as a rider to a life insurance policy. “The latter has a death benefit if you never need long-term care, premiums that cannot be increased, and is more expensive,” said Johnson, a member of the CNBC FA Council. 
According to data from the American Association for Long-Term Care Insurance, the average annual premiums for policies with a 3% growth rate in 2021 ranged from $2,220 at age 55 for a single man to $5,265 at age 65 for a single woman, if both had some health issues. Couples paid less per person.
Employers are increasingly offering long-term care insurance as a workplace benefit. It’s worth checking to see the workplace benefits your employer may offer to help with caregiving for an older spouse, parent or relative.  

Respite care

Family caregivers may spend 20 to 40 hours a week or more caring for their loved ones. Respite care can help alleviate some of the emotional, physical and financial stress.
“It really simply just means a break from caregiving,” Goyer said. “And it’s one of the most crucial things that caregivers need.”
Asking friends and family for caregiving help is often the first step but may be unrealistic depending on their responsibilities. Other options for respite care include finding an adult day care center, paying for professional help in the home, or moving your loved one to an assisted care residence for a short stay. 

Some long-term care insurance plans provide coverage for respite care, but there may be other places to get free or low-cost assistance. Check your loved one’s Medicare plan. Military veterans may be able to get resources from the Department of Veteran Affairs to cover the cost of respite care. 
The U.S. Administration on Aging’s Eldercare Locator can connect you with a local Area Agency on Aging that can offer in-home respite care support, including sitter service and preparing meals. The ARCH National Respite Network can also help you find local respite providers.  
Coverage for respite care can vary depending on your Medicare, Medicaid or health insurance plan. Ask your provider. And ask your employer. Some companies may offer paid time off for workers to provide respite care or senior caregiving. 
If your employer offers a dependent care flexible spending account, you can typically put in up to $5,000 in this account through payroll deductions, to use for respite care and other elder care costs, as long as you claim the qualifying family member as a dependent on your tax return. 
Employers may also offer senior caregiving support by helping employees navigate Medicare and Medicaid, explore in-home and out-of-home care options, and connect them to caregiving resources.  
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— CNBC’s Stephanie Dhue contributed to this report. More

Quiet luxury was one of last year’s biggest viral fashion trends, but unlike other short-lived fads on TikTok or Instagram, this one has made its way into investor portfolios and shown sizable returns.
Luxury stocks have long been regarded by some as an effective hedge against inflation.
Some of the top companies that have benefited from this new quiet luxury trend were Hermes, Prada-owned Miu Miu, Brunello Cucinelli, Compagnie Financière Richemont and Swatch Group, according to DBS.

VIENNA, AUSTRIA – NOVEMBER 25, 2022: Karin Teigl is seen wearing Hermès yellow leather mini Kelly, Baum & Pferdgarten green leather jacket, Lumina beige cropped turtleneck sweater and vintage checked green yellow pants.
Jeremy Moeller | Getty Images

Quiet luxury was one of last year’s biggest viral fashion trends on social media — but unlike other short-lived fads on TikTok or Instagram, this one has made its way into investor portfolios and shown actual returns.
So what is “quiet luxury”?

The trend revolves around understated, subtle displays of opulence and popular shows like HBO series “Succession” have also played a part in boosting its popularity.
Gone are the days of loud, flashy displays of wealth in fashion — it is now all about subtlety and minimalism.
But the trend has not only gained traction in the fashion world, even investors are starting to take notice.

Brand boost

Luxury stocks have long been regarded by some as an effective hedge against inflation. This is largely to do with the segment’s high pricing that seldom deters its affluent customer base and much higher margins than many other consumer discretionary products, such as televisions or phones.
In essence, the segment’s fundamentals have not changed drastically over decades but as the quiet luxury movement takes hold, investors are starting to cherry pick names that largely check those boxes.

Some of the companies and their labels have encapsulated what experts say is the essence of quiet luxury, with data from Southeast Asia’s largest lender, DBS Bank, showing that such names have been able to outperform their “loud” counterparts in 2023.
Some of the top companies that have benefited from this new wave are Hermes, Prada-owned Miu Miu, Brunello Cucinelli, Compagnie Financière Richemont and Swatch Group, according to DBS.

Quiet Luxury’s outperformance over Loud Luxury in 2023.

“With the quiet luxury movement underscoring growing consumer preference for subtlety in luxury consumption, companies that focus on understated elegance and timeless quality will resonate with consumers, benefitting from this trend,” said Hou Wey Fook, chief investment officer of DBS Bank.
“Hence, in 2023, quiet luxury companies notably outperformed their loud peers by 23% points. We expect this ongoing shift in the industry’s dynamics will help sustain this bifurcation in performance.”
According to DBS, a company fall under its categorization of “quiet luxury” if it’s understated and focused on high quality, while maintaining exclusivity and scarcity.
Some of the bank’s top picks include Hermes, Moncler, LVMH Moët Hennessy Louis Vuitton, Richemont, Swatch, Brunello Cucinelli and Ermenegildo Zegna.

Go long on quiet luxury

Unlike viral trends that come and go, investors are looking at these companies with a much longer term view.
“There’s this element of: ‘I’m tired of all the big logo stuff,'” said Markus Hansen, portfolio manager at Vontobel Quality Growth Boutique, noting that consumers and investors now want a higher quality product.
“It comes back to the heritage of these houses, which are the ones that are the most successful … and what we invest in are the ones that take a very long term view,” he told CNBC.

In Asia-Pacific, the demand narrative for luxury goods could be shifting due to China’s uneven post-pandemic recovery and lackluster domestic demand.
Though Chinese consumers’ appetite for luxury goods may not have completely dried up, luxury brands are broadening their horizons to cater to other big markets in Asia.
In Asia, mature markets like South Korea and Japan are seeing growing demand for luxury goods, Hansen said.
He added: “India is the last big market, not just the population, but in terms of the growing wealth of the population.”
A recent Goldman Sachs report predicted around 100 million people in India will become “affluent” by 2027 — defined by the U.S. investment bank as those earning an annual income exceeding $10,000. Currently, 60 million people in the world’s fifth-largest economy earn more than $10,000, the report said.

Loud luxury not in vogue

Quiet luxury stocks were bumped up in portfolios last year, pushing down brands that were considered too “loud.”
As a result, Kering-owned Gucci & Burberry were pushed lower in global rankings of luxury stocks, Bank of America Securities research showed.
“We believe that throughout the year brands should focus back on fashion content and newness in order to re-engage customers and drive traffic,” said BofA research analyst Ashley Wallace, noting that companies that are geared toward quiet luxury are better positioned this year.
BofA said it preferred companies like LVMH and Hermes over Gucci-owner Kering and Burberry. More

Managing Partner and the Head of Research at Fundstrat Global Advisors, speaking on CNBC’s The Exchange on Oct. 31st, 2023. 
Adam Jeffery | CNBC

Investors are embarking on a hectic week with key tech companies reporting and a big Federal Reserve meeting – and it could shape the next steps for the stock market’s rally, said Fundstrat’s Tom Lee.
Microsoft and Alphabet are posting their latest results on Tuesday after the closing bell, while Meta Platforms, Apple and Amazon are due on Thursday afternoon.

Alphabet, Amazon, Meta and Microsoft popped to fresh highs during Monday’s session. The surge in Big Tech helped carry the S&P 500 to a fresh record – and its first close above 4,900. The Dow Jones Industrial Average also closed at a new high.  
“We expected new highs by late January, which was on schedule,” Lee told CNBC’s Contessa Brewer on “Last Call.” “And I think this week is going to tell us how much further we go.”
“We were penciling in 5,000 [on the S&P 500], and we could maybe go higher,” he said. “But from there, I think an air pocket forms.”
That’s because investors will be grappling with another key catalyst: The Fed’s two-day policy meeting, which culminates with a rate decision on Wednesday.
Lee said that investors will get nervous about the Fed and its path forward on rates. “I don’t think the Fed is in the position to cut rates, but what’s going to be important is how their views around that are evolving,” he said.

He also noted that parabolic market moves, which we have had since October 2023, tend to end in “a pretty big retracement.”
“I do think we continue to be strong, but then after that, there’s a big air pocket,” Lee added.
His year-end target for the S&P 500 is 5,200. More

Smart Tax Planning

Tax season officially kicked off for individual filers on Jan. 29, and the IRS has started to process 2023 returns.
If you’re expecting a refund this filing season, there are a few ways to get the money faster, experts say.

D3sign | Moment | Getty Images

Tax season has kicked off and the IRS has started to process 2023 returns. If you’re expecting a refund, there are a few ways to get the money faster, experts say.
Often, “self-inflicted mistakes” cause refund delays, according to Mark Steber, chief tax information officer at Jackson Hewitt.

The IRS is planning for more than 146 million individual tax returns this season, and the deadline for most filers is April 15.

More from Smart Tax Planning:

Here’s a look at more tax-planning news.

Typically, you get a refund when you overpay taxes throughout the year. As of Dec. 29, the average refund for last year’s filings was $3,167, which was 2.6% smaller than 2022.

‘The best way to get your refund fast’

With many Americans relying on tax refunds, there are a few ways to speed up the process, experts say.
“Filing electronically and selecting direct deposit is the best way to get your refund fast,” IRS Commissioner Danny Werfel told reporters during a media briefing Friday. During fiscal 2022, some 93.8% of individual taxpayers filed electronic returns, according to the IRS.

Filing electronically and selecting direct deposit is the best way to get your refund fast.

Danny Werfel
IRS Commissioner

When selecting direct deposit, it’s important to double-check your banking details such as routing and account numbers. If those are wrong, the IRS may have to mail your payment by check, experts say.

Don’t ‘guesstimate’ on your taxes

Tax return mistakes are another reason for delayed refunds.
“You need to be accurate,” Steber said. “You can guesstimate on horseshoes” but not on your taxes, Steber added. You’ll need all the necessary tax forms to file a complete and error-free return. Otherwise, the IRS systems may flag your return for missing information.
Some common tax return errors are “surprisingly simple,” such as missing or inaccurate Social Security numbers, misspelled names, entering information wrong and math mistakes, according to the IRS.

When to expect your tax refund

Most taxpayers will receive their refund within 21 days of submitting their return, “and many people will see it faster than that,” Werfel said Friday. Of course, paper-filed returns or filings with errors may take longer.
There’s also a longer timeline if you’re claiming the earned income tax credit or child tax credit. By law, those filers won’t see refunds until Feb. 27 at the earliest, according to the IRS.
You can check your payment status via the Where’s My Refund tool, which provides more details this season, including actions needed from taxpayers, Werfel said.
You can use the tool to check your refund status within 24 hours of filing a current-year, electronic return and the IRS updates it overnight every day. More