Inflation-hit Americans who filed their taxes early have received, on average, smaller tax refunds this year.
Inflation-hit Americans who filed their taxes early have received, on average, smaller tax refunds this year, according to data published by the Internal Revenue Service (IRS).
The average tax refund issued by Feb. 2 averaged to $1,395, a significant decline of $568—or a drop of 29 percent—from the same time last year, the data show. So far, 2.6 million tax refunds have been issued, worth about $3.65 million.
The IRS said that the average refund amount may change in the coming weeks and months as more returns are delivered. People who may receive the earned income tax credit, which is a break given to moderate- and low-income Americans, can’t get their refund before the middle of February, the IRS has noted.
The IRS stated in another news release that most earned income tax credit, also known as the child tax credit, filers will see get refunds by Feb. 27 if there are no problems with their returns. And the IRS has received around 15.3 million returns so far, or a roughly 19 percent decrease compared with last year, it said.
“Because the 2023 filing season began on Jan. 23, the IRS had been receiving returns for 12 days by Feb. 3, 2023, compared to only five days for the 2024 filing season, which opened on Jan. 29,” the IRS said. “Considering the loss of seven days in this comparison, filing season statistics below show a strong start to filing season 2024, with all systems running well.”
In all, the agency anticipates getting more than 128.7 million individual tax returns this season, and usually three out of four are slated to get a refund. The filing season started on Jan. 29 this year.
In total, the IRS anticipates receiving more than 128.7 million individual tax returns. On average, three of four tax filers are due to receive a refund.
Illinois-based certified accountant Daniel Rahill told USA Today that early filers might be getting smaller refunds because they haven’t increased their tax withholding amounts.
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