IRS filing Season Statistics: With the Internal Revenue Service currently receiving and processing returns for the 2023 tax year, the 2024 tax season has begun in earnest.
To be eligible for their tax refund, taxpayers must submit their tax return and remit payable taxes by April 15th. This year, they might receive less money, however.
IRS refunds in 2024 are lower: IRS filing Season Statistics
As of the beginning of 2024, taxpayers are receiving smaller tax refunds, according to an IRS-published statistical report.
As of February 2 of this year, the mean refund disbursed was $1,395. During this time last year, the mean refund amount was $1,963. The average amount released via direct deposit decreased from $2,056 in 2023 to $1,543 this year. What is the cause of this decline?
Seven days or less of data
The IRS-released statistics include information through February 2. The initial figures for this year have been influenced by a reduced amount of data due to the commencement of the tax season on January 29. It began on January 23, and the numbers released persisted through February 3, of the previous year.
As of February 2, 2024, the IRS had issued a mere 2.6 million refunds, whereas it had already processed nearly 8 million during the period covered by the report from the previous year.
It is premature to make broad generalizations about the entire 2024 tax season, the tax agency advises.
The tax agency states, “Taking into account the seven-day loss in this comparison, the filing season statistics indicate a strong beginning to the 2024 filing season, with all systems operating efficiently.”
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Greater wages and part-time employment
In an interview with USA Today, certified public accountant Daniel Rahill speculated the reduced amounts could be because some employees received pay raises in 2023 despite increasing tax withholding.
Furthermore, he speculated that employees who generated lower refunds last year but did not increase their estimated tax payments may have earned more from side hustles.
The IRS has not yet provided any additional information regarding this subject.
When exactly do tax refunds become available?
Refunds may take up to 21 days to be issued, per the IRS. Individuals who opted for direct deposit as their payment method and filed their tax returns electronically have the highest probability of receiving their funds earlier.
Those who submitted their returns via paper check or failed to file electronically may anticipate receiving their refunds six to twelve weeks after the return was mailed.
Methods for Monitoring Your Tax Refund
The “Where’s my refund?” tool is available on the IRS’s official website for monitoring the status of your refund.
The process of applying for the Child Tax Credit may result in a postponement of the refund, notwithstanding the utilization of direct deposit and early e-filing of the income tax return.
Which days of the week do tax refunds typically arrive?
This will enable payment tracking for taxpayers twenty-four hours subsequent to the processing of an electronically filed tax return.
Additionally, you may utilize the IRS2Go mobile application to monitor the progress of your payment. By doing so, you can track your refund payment four weeks after the IRS receives your paper return or 24 hours after the electronic return.
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