A large section of the population had received quite a large tax refund the previous year- but one might need to temper their expectations for the current year. As far as this filing season is concerned, the average amount for refund has been tracking at around 11% lower than the previous year.
The typical refund will also be coming in at a sum of $3,079, down from a sum of $3,473 in 2022- according to data from the IRS. But one also needs to understand that the big refund which took place the previous year also has a lot to do with the policies that came about in the pandemic era- which involves the stimulus check payments and the expanded child tax credit payment that were issued through refunds to people who hadn’t received the payment in the first place.
The Tax Refunds For This Year Could Be Lower Than The Previous Year
Now, while the average tax refund amount might be a little less this year, a big share of the taxpayers will still be receiving the refunds- as opposed to simply owing the IRS money on their taxes. The IRS has also reported a massive increase of 18.2% in the number of Americans who received some form of refund in the early part of the tax season- despite there having just a 4.2% increase in the number of tax returns that were processed to date.
It is understood that the size of one’s tax refund will be loosely based on how much one overpaid in their taxes for the previous year. And that, in turn, will be dependent on how much one elected to have withheld from their paychecks- and their eligibility for the tax credits.
