Tax Refunds See Uptick Despite Decrease in Taxpayers Filing Returns
Tax Refunds Show Modest Increase Amid Decrease in Taxpayers Filing Returns
Yahoo! Finance – Tax refunds have finally seen an increase after two weeks of being smaller compared to last year, according to the latest data from the IRS. The average refund amount has gone up by 2%, now standing at $3,207 as of February 16 compared to $3,140 at the same time last year. However, the number of taxpayers filing returns has decreased by nearly 25%, with only around 21 million refunds issued so far, compared to almost 28 million last year.
Despite the decrease in the number of returns processed the average refund has still managed to increase. This increase is expected to continue as more returns, especially those with the earned income tax credit are processed. However, refunds including the earned income tax credit and the additional child tax credit are delayed by law until mid-February. Natural disasters, such as storms impacting taxpayers in areas like San Diego have also contributed to the low number of returns received and processed.
Tax Refunds Show 2% Growth Compared to Last Year’s Figures (PHOTO: NBC News)
IRS Extends Filing Deadline for Disaster-Affected Taxpayers, Vows Timely Refund Processing
The IRS has extended the filing deadline to June 17 for taxpayers in San Diego, Connecticut, Rhode Island, Maine, West Virginia and Michigan affected by storms, tornadoes, and flooding. This extension aims to provide relief to those facing difficulties due to natural disasters. Despite the challenges, the IRS continues its efforts to process returns and issue refunds in a timely manner with expectations that more refunds will be distributed in the coming weeks.
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