![Tyson Foods Plant [Photo: Food Manufacturing]](https://southarkansassun.com/wp-content/uploads/2023/08/iStock_1185520857__1_.5e441daa51cca-600x337.jpg)
![Silverado Senior Living Management Inc. [Photo: Los Angeles Times]](https://southarkansassun.com/wp-content/uploads/2023/10/download-6-4-600x337.jpg)
![China's Wuhan Institute of Virology [Photo: Nature]](https://southarkansassun.com/wp-content/uploads/2023/09/d41586-021-01529-3_19239608-600x337.jpg)
Tax season is here, and the IRS has revealed a significant drop in the average tax refunds for 2024 compared to the previous year. As of February 2nd, over 2.6 million refunds have been issued, totaling approximately $3.65 billion. However, the average tax refunds now stand at $1,395, marking a notable decrease of 29% from the $1,963 average seen last year.
Photo from Google
Understanding Factors Influencing Refund Amounts
It is imperative that these figures be interpreted with caution. The 2024 tax season began later than the previous year, therefore the comparison is based on a smaller data set. The IRS cautions that this shortened period of time can distort this year’s comparison of tax refunds.
Several factors could influence these refund amounts. Firstly, despite the delayed start, the 2024 filing season has begun smoothly. As more returns are processed, the average tax refunds size may increase. Additionally, certain refunds, especially those claiming specific tax credits, are subject to a delay until at least February 15th, aiming to prevent fraud.
Refund amounts may also be impacted by prospective modifications to tax laws, including measures that are now pending in Congress. Proposed legislation, for example, aims to raise the refundable part of the child tax credit, which may affect the average tax refunds received by eligible filers.
READ ALSO: Navigating Tax Season 2024: Expert Tips And Strategies For Financial Success
Insights into 2023 Changes and Inflation Adjustments
Individuals may also see variations in their refund amounts due to personal tax situations like changes in dependents or income sources. However, overall federal-law changes for tax year 2023 aren’t expected to significantly lower tax refunds compared to the previous year.
Looking forward, experts anticipate inflation adjustments in the tax code for 2023, potentially leading to higher refund amounts for some taxpayers. With provisions like the standard deduction increasing by 7% this year, individuals whose income didn’t keep pace with inflation rates may see a boost in their average tax refunds.
Tax experts tell people not to worry despite the initial decline, pointing out that these numbers could alter as the filing season goes on. The deadline for taxpayers to file their 2023 taxes is April 15th.
READ ALSO: California Monthly Payment Of $750: Residents Excited To Receive With No Strings Attached – Here’s How
