The U.S. Internal Revenue Service (IRS) has issued nearly 43 million tax refunds totaling $135.3 billion as of March 8th. This substantial figure highlights a significant amount of returned revenue from the IRS within the early part of the tax season.
Despite dealing with changes to tax codes and a prolonged government shutdown, the IRS processed about 59.2 million returns, though slightly less than the previous year. The IRS is keen on issuing the remaining refunds in a timely and accurate manner.
The average refund amounts have seen an uptick from last year’s $2,972 to the current year’s $3,145. However, the average amounts could still swing due to millions of yet-to-be processed returns. Out of the expected 146 million individual tax returns for 2023, the IRS has only been able to process less than half thus far.
Taxpayers can track the status of their refunds using the “Where’s My Refund?” tool on the IRS website. This tool updates daily for e-filed returns and every four weeks for paper-filed ones.
Early tax refunds surge despite obstacles
It allows taxpayers to monitor their pending refund status in real time.
The timing of tax filing often depends on taxpayer expectations of a refund. Those anticipating a refund tend to file early, while those likely to owe taxes tend to delay. However, delay could potentially lead to inaccuracies in filing and subsequent penalties. Therefore, it is prudent to start tax preparation early, despite the expectation of a refund. Notably, penalties and interest may accrue if taxes due are not paid by the typical mid-April deadline, even with an extension.
On December 23rd, the IRS reported that the average tax refund stood at $3,167 for 2023, slightly lower than 2022’s average of $3,252. Nonetheless, these numbers could sway as more returns get processed.
