The average tax refund so far this season is 32 percent lower than last year, early data shows.
The average IRS return for taxpayers who have filed their returns already is $2,169, as of February 14.
By the same point in tax season last year the average refund was $3,207, according to IRS filing data.
Although the average is currently lower than 2024, ‘historically, filing season numbers even out as more tax returns come in,’ the IRS said.
The figure has likely been dragged down partly because the data does not include any refunds related to earned income tax credit or additional child tax credit.
These tax refunds aren’t issued before mid-February, the IRS stated.
By contrast, last year’s filing data for the same period included returns claiming these credits.
These credits can turn some returns into five-figure sums, and therefore substantially raise the average rebate.
The average tax refund so far this season is 32 percent lower than last year
As these tax credits take longer to process the IRS has cautioned against relying on any specific date for a refund to pay bills or make large purchases.
They take longer because under the federal Protecting Americans from Tax Hikes Act (PATH) they require additional identity checks.
This year the IRS anticipates refunds for those tax credits to be available in filers’ bank accounts or on debit cards by March 3 at the earliest.
Federal holidays and weekends can also slow down the process too.
For those who do not claim these credits and file their federal return electronically using direct deposit, refunds are usually sent out in less than 21 days, according to the IRS.
Tax season officially kicked off on January 27 when the IRS began processing returns.
The IRS had received roughly 33 million individual tax returns by February 14.
While much of the process of filing a tax return is the same as it was last year, there are some key changes that Americans should be aware of.
For the majority of filers, taxes for 2024 returns are due on April 15
The IRS expects to receive more than 140 million individual returns this tax season
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Anyone who sells items online or has bought an electric vehicle in the last year should be careful of potential pitfalls which could affect their return.
Meanwhile more Americans will have the opportunity to file their taxes for free under an expansion of the Direct File program.
For the majority of filers, taxes for 2024 returns are due on April 15.
Taxpayers who live in Los Angeles County and have been affected by the recent devastating wildfires will have an extension until October 15, alongside others who have been granted disaster tax relief.
The IRS expects to receive more than 140 million individual returns ahead of the federal deadline.
It comes as the Department of Government Efficiency (DOGE) continues to slash thousands of federal jobs including expected cuts at the IRS.
It is not yet clear how any cuts will affect the IRS’s services this tax season.