THE average tax refund this year is 32.4% lower than what it was last year at this time, according to data revealed by the IRS.
Data shows that Americans aren’t getting as high a refund as they have done previously – meaning you could be receiving less money back from your tax filings.
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As of February 14, the average return is $2,169.
This is compared to $3,207 at the same point later, according to IRS data.
The IRS has spoken out about this to set the record straight for any confused taxpayers.
They said that “historically, filing season numbers even out as more tax returns come in”.
This suggests that one of the reasons for the low refund rate this year is the lack of currently filed tax returns.
The deadline for tax returns isn’t until April 15.
Alternatively, the figure has likely been pulled down because the data does not include any refunds related to earned income tax credit or additional child tax credit.
These specific refunds are not usually distributed until mid-February, the IRS has assured.
Credits like these can turn some returns into five-figure sums, and substantially boos the average return.
It is important to note that last year’s filing data for the same period included returns claiming these credits, suggesting the case was the same in 2024.
They take longer to process because they require additional identity checks through the federal Protecting Americans from Tax Hikes Act (PATH).
The IRS has even suggested that these credits might not make it into bank accounts until March 3 at the earliest.
The process can also be slowed by federal holidays and weekends.
Refunds are usually sent out in 21 days for those who do not claim these credits and file their federal return electronically using direct deposit.
Americans should feel reassured that tax season can sometimes hit delays, and every tax season is different.
As of February 14, the IRS has received some 33 million returns.
TIPS ON TAX FILING
Tax season can be a stressful time, so it is important to be prepared and fully aware of the best ways to get the most money back.
The US Sun has been reporting on the current season, with warnings on what to avoid and ways to improve the process for you.
To track your cash, Americans can use a little-known online tool called Where’s My Refund? to check the status of your income tax refund within 24 hours of e-filing.
For paper returns, this can generally be done within four weeks.
To save on refund delays, Americans are being warned to avoid a TikTok trick making the rounds in which they encourage you to withhold things on your statement.
Jackson Hewitt, chief tax officer Mark Steber, said: “There’s usually some credibility in the claim, the credit, the deduction.
“It does exist, but not in the way they phrase it and certainly not in the way they’re intending it.
How to get faster returns
Americans may be leaving up to $5,000 on the table by not planning and overlooking credits and deductions available to them, according to some experts.
Taxes for 2024 returns are due on April 15 for most people; however there are exceptions for some filers.
These include about 10 million people impacted by the Los Angeles fires, with those affected having until October 15 to file.
The U.S. Sun spoke to several tax and accounting experts who shared their top tips on how to save money and get a fast return.
Tax expert Chris Rivera said people can follow some simple tips to help save money.
Firstly, Rivera said it was important to not miss any deductions. For example, if you are self-employed or own a business, ensure you can claim deductions like home office expenses, business mileage and internet costs.
Also, use detailed records to back up these claims.
Secondly, take advantage of tax credits. Rivera said tax credits like the earned income tax credit or child tax credit provide dollar-for-dollar reductions in taxes owed.
Lastly, ensure you choose the right filing status, which can significantly impact your tax liability.
Tax expert Karla Dennis added that tax credits were “always better than deductions” as they lower income for deciding your tax return.
TurboTax expert Lisa Greene-Lewis said people should file “as soon as possible” to get a faster return, noting the average refund was actually close to $3,000.
