The whole sum of money flowing into American wallets from federal tax refunds is down sharply in comparison with February 2023, based on the newest figures from the IRS.
Nevertheless, the typical refund quantity is increased.
To date in 2024, federal tax refunds quantity to about $67 billion, a 23% lower from the $87 billion refunded on the similar level final yr.
The scale of the typical refund has risen yr over yr. It stands at $3,207, up about 2% from the typical refund of $3,140 at this level in 2023.
So, what’s happening right here? The distinction within the route of whole refunds and common refunds truly has a easy rationalization: Final yr, the tax season began a few week sooner than it did this yr. As the IRS says in a information launch:
“Contemplating the lack of 7 days on this comparability, submitting season statistics under proceed to point out a robust begin to Submitting Season 2024, with all methods working effectively.”
In different phrases, on steadiness, issues look good for taxpayers this yr.
Additionally, to date this tax season:
- 34.7 million returns have been acquired by the IRS (down 5.7% from the identical time final yr)
- 34.5 returns have been processed (down 6%)
- 20.9 million refunds have been issued (down 24.8%)
For its newest replace, the IRS in contrast knowledge from two time limits — Feb. 17, 2023, and Feb. 16, 2024.
Whatever the dimension of your tax refund, there’s a lot you are able to do to make use of the cash to enhance your life. For tips about what you must and mustn’t do along with your refund, try:
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