Not surprisingly, the average tax refund so far is lower than this time last year. Just like the Internal Revenue Service – IRS- forecasted, taxpayers are receiving less money than in their previous tax returns.
The Internal Revenue Service reported the average tax refund at the beginning of this month. So far, tax refunds have gone down by more than 10%. This percentage is quite important.
It is of vital importance to get as much as possible since inflation has affected American families’ financial situation. What’s more, many families rely on this money to make important expenses.
What is the average amount taxpayers are receiving for their tax refund according to the IRS?
The average tax refund is about 1,963 dollars as of February 3, 2023. Last year’s amount was nearly 11% more if we compare the refunds. Taxpayers collected 2,201 dollars on average this time last year according to the IRS.
Getting less money for their tax refunds and having higher prices due to the increase in the cost of living may affect a lot of families. The IRS had already warned taxpayers about this drop.
They did so in order to have time to manage taxpayers’ budgets to cope with the new situation. Bear in mind that many credit amounts went back to normal while others disappeared, affecting tax refund amounts.
When is the deadline to file tax returns?
April 18 is the deadline the IRS set to file your tax return. This is essential not to miss it since it may imply having to pay a penalty. File your tax return as soon as possible and pay any tax debt too.
Having an extension does not allow you to pay taxes later on. The sooner you file your tax return, the sooner you will get your tax refund. Remember you can do it electronically.
The IRS advises taxpayers to get a direct deposit so that they can collect their tax refund within 21 days after filing. Paper tax returns may take much longer so it is always best to do it online. Plan what you are going to do with the money you get, otherwise, you might end up wasting it on unnecessary items.