Are refunds larger this year than in 2023?
The IRS has reported increases in the average tax refund distributed this year by as much as five percent.
Tax filers in the United States have a little over two weeks to submit their 2023 tax return to avoid penalties.
The returns are due on Monday, 15 April, but extensions are available for those who need them. However, before requesting an extension, you should be aware that it only applies to the filing deadline, not the payment of any taxes owed to the IRS.
You can use the IRS’ Free File tool to request an extension. The deadline will be pushed back to 15 October 2024. For those who would like to make a payment and request an extension, the IRS advises that one use the Electronic Federal Tax Payment System (EFTPS), which allows payments to be made using a credit or debit card, as well as a digital wallet and IRS Direct Pay. “The IRS will automatically grant an extension when a taxpayer makes an electronic payment and indicates it’s for an extension. In that case, there is no need for that taxpayer to file Form 4868,” reported the agency in a press release on the topic earlier this month.
Refunds have grown in 2024
As is typical, the IRS made a series of adjustments to the agency’s tax brackets and standard deductions. This year, inflation was considered, and the agency attempted to prevent an increase in taxes paid that would go over and above those that would diminish purchasing power for filers.
On 29 March, the tax authority reported that the average refund distributed on 22 March was $3,081 —a 6.14 percent increase over those sent on a similar day in 2023. Those receiving their refund through direct deposit are $3,152, just over five percent higher than those sent towards the end of March a year ago.
How many returns have been processed in 2024?
As of 22 March, the IRS has processed 79,243,000 of the 80,470,000 million returns received by the agency. The total number of returns received is lower than it was in 2023, but only slightly, and with two weeks left before the deadline, there is still time for the year-to-year totals to equalize. Regarding refunds, 59.9 million have been sent, with an associated monetary value of $164.1 billion when added together.