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Millions of Americans awaiting their refund checks could be disappointed, as early data shows that average workers are receiving 29 percent less in tax refunds from the Internal Revenue Service (IRS) this year.
The average refund check through February 2 is worth $1,395, according to statistics published by the IRS on Thursday. This amount is significantly less compared to the $1,963 received on average last year.
Despite the noticeable reduction in the average refund issued this year so far, the IRS does not appear alarmed, noting that the average refund amount is likely to change in the coming months.
The average refund check through February 2 is worth $1,395, according to statistics published by the IRS on Thursday. This amount is significantly less compared to the $1,963 received on average last year.
Despite the noticeable reduction in the average refund issued this year so far, the IRS does not appear alarmed, noting that the average refund amount is likely to change in the coming months.
he tax season started on January 29 this year, and as of February 2, the IRS has only been processing returns for five days.
The 2023 filing season began on January 23 last year, giving the agency with an additional week to receive and issue refunds by the same time.
Despite the noticeable reduction in the average refund issued this year so far, the IRS does not appear alarmed, noting that the average refund amount is likely to change in the coming months
The IRS said in a release: ‘Considering the loss of 7 days in this comparison, filing season statistics below show a strong start to filing season 2024, with all systems running well.’
Daniel Rahill, a CPA in Chicago, said that early filers may be receiving smaller refunds due to the fact that those who earned higher salaries in 2023 did not increase their tax withholding accordingly.
‘[I]t will be an interesting analysis to see where the next wave of numbers come in once we receive more tax filing data,’ he told USA Today.
Some tax experts also suggest that refunds could be much higher than last year, estimating an increase of roughly $300 to $400.
‘For anybody whose income did not outpace inflation, they should do better. It’s not even voodoo or marketing spin, it’s pretty much just science,’ Mark Steber, chief tax information officer at Jackson Hewitt, told FOX Business.
The amount Americans have received in rebates has been rising year-over-year, according to Internal Revenue Service (IRS) data. For the 2022 season, the typical taxpayer got back $3,012.
A refund is money that you overpaid to the IRS through paycheck withholdings, which the agency has been holding until you file your tax return.