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The Internal Revenue Service (IRS) reported that Americans received an average of $ 1,963 tax refund through February 3, 2023. When compared to this year’s February 3, it has decreased to $ 1395, a 29% difference from last year.
Start of 2024 filing of tax refund (Photo: Getty Images)
IRS Explains The Plunge Of Recent Data On Average Tax Refund
The IRS attempts to ease the Americans worrying about the data published by the government bureau. Reported by The Blaze, IRS has noted that 2023 filing season began in January 23 whereas this year it started on the 29th of January. The data reported is still in its early days. The agency believes that this could increase as they process more returns and considering that all their systems are running well.
As of February 2, 2024, IRS has recorded a total of at least 2.6 million tax refunds that is worth $ 3.6 billion. A day after, the agency recorded that the total of a tax refund is closing for 8 million worth a total of almost $ 15.7 billion.
Taxpayers can submit their returns on or before April 15 or they may request for an extension. By the said deadline, the IRS is predicting that the total individual tax returns will be more than 128.7 million.
READ ALSO: Security Holes That Permit Taxpayers’ Data To Be Stolen, Now Fixed, Says IRS
Inflation Could Be Helpful To American Taxpayers
With the news of the decreased average tax refunds, Americans other concern is the inflation. Investopedia reported a 7% year-over year inflation in 2021, 6.5% in 2022 and 304% in 2023.
But be of good cheer, as reported by CBS MoneyWatch, because the IRS is pushing the standard deduction to a more generous level and the agency is raising its tax bracket by 7.1%. This has become possible by adjusting many of its 2023 provisions for inflation.
Jackson Hewitt chief tax information officer, Mark Steber, said that a taxpayer’s income that has not adjusted by the inflation could see a better refund. A higher refund up to 10%. Low-income and moderate-income people should see improvements in their taxes this year.
READ ALSO: Minnesota Department Of Revenue Delivers Third Round Of Rebate Checks To Boost Economy
