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Tax season is underway, and the IRS has issued nearly 8 million refunds worth approximately $15.7 billion as of February 3. reported agency,
The average refund amount was $1,963, compared to $2,201 paid last year at the same point in the filing season. Of course, the average could change as the IRS processes millions more returns before the April 18 deadline.
While the agency has warned Refunds may be “somewhat less” This season, experts say it’s still too early to know for sure.
As of February 3, the IRS processed more than 16.7 million returns, up 29% from the previous year, according to the report released last Friday. About 8 million refunds compared to about 4.3 million last year.
The large number of payments could reduce the average refund size compared to last season’s payments, said Bill Smith, national director of tax technical services in CBIZ MHM’s national tax office, with approximately 85% more refunds being issued.
Still, “it’s hard to draw too many conclusions in a relatively short period of time,” said Eric Bronnekant, head of tax at Betterment, a digital investment advisor.
IRS hopes to be more efficient this season
“I think the processing percentage is very telling,” Smith said, noting the IRS may be more efficient without additional pandemic duties and a smaller backlog of unprocessed returns.
The agency started the tax season Large Customer Service Team and as enhanced technology it begins to deploy around $80 billion funding Approved by Congress in August.
“We are starting to see the light at the end of the tunnel,” said the National Taxpayer Advocate. Erin Collins it is written in January report to Congress, “I’m not sure how much more traveling we have to do before we see the light of the sun.”
how to get tax refund faster
Smith said he looks forward to seeing how quickly refunds reach electronic filers this season. “This is a statistic that people really want to know,” he said.
Typically, you can expect a refund within 21 days when filing an error-free, electronic return with direct deposit for payments, according to the IRS.
Bronnekant said you can avoid unnecessary delays by double-checking all the details on your return, including your address, Social Security number and direct deposit details.
You can check your refund status with “Where’s my refund?” online tools or through IRS2Go App, But you’ll need to wait 24 hours after you file your 2022 return electronically and three to four days after you file your 2020 and 2021 returns. Paper returns can take up to four weeks for a status update.