The whole sum of money flowing into American wallets from federal tax refunds is down sharply in comparison with February 2023, in response to the most recent figures from the IRS.
Nonetheless, 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 identical 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 occurring right here? The distinction within the path of complete refunds and common refunds really has a easy clarification: Final yr, the tax season began a few week sooner than it did this yr. Because 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 powerful begin to Submitting Season 2024, with all programs operating nicely.”
In different phrases, on stability, issues look good for taxpayers this yr.
Additionally, up to now 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 information from two closing dates — Feb. 17, 2023, and Feb. 16, 2024.
Whatever the measurement 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 it’s best to and shouldn’t do together with your refund, try: