Refunds Have Dropped
According to the CNET story, the IRS has processed fewer tax returns and issued less refunds in the 2024 tax season than it did in the previous one. They completed 25.4 million tax returns by February 9—a 4.4% decrease from the previous year. By that date, they had also provided over 7.4 million reimbursements, a 43.9% decrease from the same period the previous year.
In 2024, the Average Refund Amount Declines
According to CNBC, the average refund amount this year is $1,741, which is less than the average of $1,997 by February 9 of last year. Because the tax season began a week earlier last year, comparisons are a little more difficult. 7.4 million of the people who received refunds choose direct deposit, and they received an average of $1,831 in compensation. By this time last year, 12.1 million individuals had opted for direct deposit, with an average refund of $2,084.
Moreover, the majority of people who are eligible for tax refunds are those who have paid more in taxes than they owe. This may occur if their wages were withheld excessively or if they are eligible for specific tax credits or deductions. In order to determine their eligibility for a refund, individuals should review their circumstances and consult with a tax professional.
