The IRS expects more than 128.7 million tax returns to be filed by the April 15 tax deadline.
WASHINGTON — With more than 34 million returns already processed, some Americans may have noticed a larger tax refund is on the way this year.
So far, refunds are up 2% from last year, according to initial data from the Internal Revenue Service. As of February 16, the average refund amount was $3,207, a 2.1% increase over the $3,140 average seen in the same period early 2023 report.
Part of the reason Americans are receiving larger tax refunds on average is due to rule changes the IRS has made to combat inflation. The tax authorities have increased the tax brackets and standard deductions for 2023 tax returns by 7%.
These averages may change as more returns are processed. After all, this year's tax season started later than usual, on January 29th. The IRS says the current tax season is off to a strong start, although there was a seven-day loss compared to initial filings in 2023.
The IRS expects more than 128.7 million tax returns to be filed this season.
How much is the child tax credit in 2024?
Currently, the tax credit is $2,000 per child, but only $1,600 is refundable.
Earlier this year, Congress announced a bipartisan agreement to strengthen the current child tax credit. The bill would gradually increase the maximum refundable child tax credit to $1,800 on 2023 tax returns, $1,900 on next year's tax returns, and $2,000 on 2025 tax returns. Masu.
If the deal goes through, about 16 million children from low-income households would benefit from the child tax credit expansion, according to the Center on Budget and Policy Priorities. Lawmakers hope to pass this bill as soon as possible.
The IRS said it is “closely monitoring” the bill but urges taxpayers not to wait to file their 2023 tax returns. If Congress passes changes to the child tax credit, the IRS will automatically make adjustments to applicants, the agency said.
When will I receive my tax refund?
The IRS expects most refunds to be issued within 21 days of filing.
Taxpayers can check the authorities' “Where is my refund?” Check the IRS.gov page for refund status.
When are taxes due in 2024?
Taxpayers have until April 15, 2024 to file their 2023 returns.
If you live in Maine or Massachusetts, your deadline will be extended to April 17, 2024 due to public holidays in those states.
What's different this year?
Agency leaders say more walk-in centers will open to assist taxpayers this year, enhanced paperless processing will help with the IRS, and more personal online accounts will be available to taxpayers. Says.
Additionally, eligible taxpayers will now be able to file their 2023 returns online directly with the IRS through the new e-Direct File Pilot. The IRS says it will be rolled out in stages and will be widely available by mid-March.
The Associated Press contributed to this report.