Many families could see drastically smaller tax refunds in 2023: Here’s why

Family budgets could be even more stretched in 2023 as we battle high, inflation fueled prices; rising interest rates; growing fears of a recession and job cuts, and watch some COVID-related stimulus breaks disappear on 2022 federal income tax returns.

A long list of temporary tax breaks were designed to shore up and even boost household wealth during the pandemic. But taxpayers won't see many of those same generous benefits on the 2022 tax return, as there's more of a return to normal if you will for some key tax breaks.

Mark Luscombe, principal analyst for Wolters Kluwer Tax & Accounting, said it's hard to say how much smaller federal income tax refunds could be for some households but the amount will be sizable for many.