After the Economic Impact payments, millions of taxpayers expected a lower tax refund from the IRS. This prediction became true for many Americans and the latest statistics prove it.
Getting a tax refund from the IRS is a financial relief for many Americans. Although you should not rely on it, there are many taxpayers who do. They expect to get this money to be able to pay a loan, a debt or to buy something they really need.
That is the reason why so many taxpayers are looking forward to filing their tax returns as soon as it is possible. By doing so, they can expect their IRS check in about 21 days. It is usually faster though.
WHAT IS THE AVERAGE TAX REFUND AMOUNT ACCORDING TO THE IRS?
As of December 29, 2023, the average tax refund amount was $3,167. This implies that the average payment is lower than the previous tax refund in 2022 says the IRS.
Bear in mind that the IRS stated that the average tax refund in 2022 was $3,252. Thus, it was about 2.6% lower in 2023. That is a lot of money if you are on a shoestring budget. It is very similar for those taxpayers who requested a tax refund by direct deposit.
Some people still prefer to file their tax returns on paper and get a paper check. However, it can take up to six months to receive it. So, it is advisable to ask for a direct deposit and file electronically.
The average direct deposit was $3,145 in 2023. While the average direct deposit was 4.5% higher in 2022. As a matter of fact, the average direct deposit was $3,293 in 2022. The number of filers has gone down to 162,037,000, while it was 165,774,000 in 2022 claims the IRS.
KEY 2024 DATES FOR THE NEW FILING SEASON
The Internal Revenue Service has announced that January 12 will be the day when IRS Free File opens. Basically, this is the way to do your taxes for free. Just in case you are new to the tax world in the United States.
Remember that apart from being easy and having no cost, it is a safe way to file your tax return. If you prefer to get rid of this burden, leave it to a professional and official tax preparer the IRS recommends.
The next important date for taxpayers will be January 16. In fact, this will be the due date for 2023 4th quarter estimated tax payments. January 26 is the Awareness Day for the Earned Income Tax Credit.
The new filing season starts on January 29 and it finishes on April 15, 2024. If you live in Massachusetts and Maine, your due date is April 17. The due date for those who got an extension will be October 15 said the IRS.