IRS 2024 tax returns: What is the average payment?
Tax season is here, and filers can expect larger refunds this year... Here’s why...
Tax season has officially begun, with the IRS beginning to process tax returns and distribute refunds. How large will the average refund be this year? Let’s take a look.
STARTING #TODAY: Have you heard? #IRS is now accepting tax returns! Here’s a #FriendlyReminder to check out the resources available to help you throughout the tax filing season: https://t.co/1L4TxdFQPW pic.twitter.com/ODUpZihdTE
— IRSnews (@IRSnews) January 29, 2024
With no changes to the tax code compared to last year, the size of the refund is likely to be similar. These refunds are smaller than those distributed during the pandemic when additional tax credits and benefits were enhanced to boost the income of households, particularly those who had lost their jobs or had children.
Adjustments made to federal tax brackets
In 2023, the average tax refund was $3,145, a 4.5 percent decrease from 2022. However, thanks to increases in the standard deduction and adjustments to the federal tax brackets to account for the disposable income-destroying effects of inflation, refunds could rise slightly this year.
| Tax Brackets | 2022 Income | 2023 Income |
| 10% for incomes | of single individuals with incomes of $10,275 or less ($20,550 for married couples filing jointly) | of $11,000 or less ($22,000 for married couples filing jointly) |
| 12% for incomes | over $10,275 ($20,550 for married couples filing jointly) | over $11,000 ($22,000 for married couples filing jointly) |
| 22% for incomes | over $41,775 ($83,550 for married couples filing jointly) | over $44,725 ($89,450 for married couples filing jointly) |
| 24% for incomes | over $89,075 ($178,150 for married couples filing jointly); | over $95,375 ($190,750 for married couples filing jointly) |
| 32% for incomes | over $170,050 ($340,100 for married couples filing jointly) | over $182,100 ($364,200 for married couples filing jointly) |
| 35% for incomes | over $215,950 ($431,900 for married couples filing jointly) | over $231,250 ($462,500 for married couples filing jointly) |
| 37% for | individual single taxpayers with incomes greater than $539,900 ($647,850 for married couples filing jointly) | N/A |
Additionally, adjustments to these brackets could keep some workers in a lower tax bracket, meaning that while their refund might not be larger, their overall tax bill is likely lower than it would have been without the changes.
How long will it take to receive a refund?
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The IRS estimates that a person who submits their return electronically and provides the agency with direct deposit information can expect their refund within twenty-one days. Paper returns take much longer to process, creating delays in receiving a paper return.
For those seeking a free filing option, the IRS offers this service for those with an annual gross income of $79,000 or less. To figure out which IRS partner has the software that best meets your filing needs, you can use this survey developed by the agency.