The Internal Revenue Service (IRS) has already issued approximately 3.2 million tax refunds for the 2024 filing season, marking a significant milestone as tax season kicks off. As of December 27, the average refund stood at $3,138, a slight decline of about 1% compared to the previous year. With over 140 million individual filings expected before the April 15 deadline, taxpayers are advised to file electronically and choose direct deposit to expedite their refunds.
The initial days of the filing season saw an average refund of $1,928, a figure consistent with the average refund issued by January 31. This reflects the IRS's efficiency in processing refunds, as most are completed within 21 days. However, several factors can impact the timing of refunds, including filing methods and eligibility for specific credits.
Former IRS Commissioner Danny Werfel emphasized a key strategy for taxpayers seeking a swift refund:
"Filing electronically and selecting direct deposit is the best way to get your refund quickly," – former IRS Commissioner Danny Werfel
Tax credits such as the Earned Income Tax Credit (EITC) and Additional Child Tax Credit (ACTC) play a crucial role in boosting refunds for lower earners, occasionally resulting in 'five-figure refunds.' However, the IRS cannot issue these specific refunds before mid-February. This delay ensures thorough verification processes to prevent fraud and ensure accuracy.
For those eager to track the progress of their refunds, tools like "Where's My Refund?" and the IRS2Go app provide real-time updates. If there are no issues with a taxpayer's filing, refunds should arrive by March 3. This efficient process highlights the IRS's commitment to timely service amid the complexities of tax season.