IRS Says Refunds Are Much Smaller This Year

(AmericanProsperity.com) – The IRS has spoken about the tax refunds that were available to people last year and the ones that people are receiving this year as they acknowledge a plunge in the amounts in comparison.

Many Americans tried filing their taxes early in hopes that they might get more back, however, it seems that quite the opposite has happened this year and many are seeing a much lower number than they had before. The average refund that was issued through February 2 was $1,395 which is about $568 lower than the average refund amount for last year at this time.

The numbers that are given by the IRS are based on about 2.6 million tax refunds that total about $3.6 billion. The IRS has said that the amount that people are getting in refunds can change as people continue filing their taxes.

For example, the IRS says that those who are looking to get the child tax credit or the income tax credit can’t legally get their money until mid-February and this could be distorting the numbers.

Daniel Rahil, who is a certified accountant, said that many factors could be affecting this such as people who are getting a lower refund because they got a raise in 2023 but did not up their tax withholding. He also continued by saying, “‘Gig’ workers may have earned more income but not stepped up their estimated tax payments, again yielding smaller refunds.”

Rahil said that they expect the numbers to change before April 15, which is the cut-off day for filing, as people continue to file their taxes until then. Rahil said that he’s interested in seeing how the numbers change as more people continue to file their taxes.

The IRS says that they are expecting to receive more than 128.7 million tax returns and they said that on average, three of the four filers are expected to get a refund.

Copyright 2024, AmericanProsperity.com