IRS Processes Over 100 Million Tax Returns, Average Refund Rises to $3,011

The Internal Revenue Service (IRS) has processed more than 100 million individual tax returns as of April 6, 2024, with the average refund amount increasing to $3,011, according to a recent GOBankingRates poll. This year's average refund is higher than the $2,878 reported in April 2023.

The IRS also estimated that 19 million taxpayers would file for an automatic extension, granting them until October 15, 2024, to submit their tax returns. Taxpayers in Massachusetts and Maine had until April 17 to file their taxes or request an extension due to the Patriots Day holiday and the Emancipation Day holiday in Washington D.C.

Despite the increase in the average refund amount, more than half of the poll respondents (52.24%) expected their tax refund to be about the same as last year, while nearly a third (29.65%) anticipated receiving less this year. Only 18% of respondents expected a larger federal tax refund in 2024.

Why this matters: The IRS's processing of over 100 million tax returns and the increase in the average refund amount have significant implications for the U.S. economy and individual households. Tax refunds often represent a substantial financial windfall for many Americans, and the timely processing of returns ensures that taxpayers receive their refunds promptly.

The IRS has also made efforts to improve its customer service this tax season, answering over 1 million more taxpayer phone calls, assisting more than 170,000 additional people in person, and seeing a 75 million increase in visits to IRS.gov, driven by a new and expanded "Where's My Refund?" tool.

However, the GOBankingRates poll suggests that receiving a large tax refund may not be in one's best financial interest, as it means the taxpayer overpaid their federal taxes throughout the year, essentially providing the government with an interest-free loan. Financial experts advise taxpayers to consider adjusting their withholding taxes to keep more money in their paychecks throughout the year.

As the IRS continues to process the remaining tax returns and issue refunds, taxpayers are encouraged to use the "Where's My Refund?" website or the IRS2Go mobile app to track the status of their refunds. Those without internet access can call the IRS's phone line to check on their refund status.

Key Takeaways

• IRS processed over 100M tax returns, avg refund up to $3,011 from $2,878 in 2023.
• 19M taxpayers filed for extension, due date Oct 15, 2024.
• 52% expected same refund, 30% less, only 18% expected larger refund.
• IRS improved customer service, saw 75M more visits to IRS.gov.
• Experts advise adjusting withholding to keep more in paychecks, not overpay IRS.