WASHINGTON — With more than 34 million returns already processed, some Americans might have noticed a bigger tax refund headed their way this year.
Refunds are so far coming in 2% higher than last year, according to early data from the Internal Revenue Service. As of Feb. 16, the average refund was $3,207, a 2.1% increase from the $3,140 average seen in early 2023 reports from the same period.
Part of the reason that Americans are receiving bigger tax refunds on average is due to the provision changes the IRS made to counteract inflation. The tax agency pushed tax brackets and standard deductions up by 7% for 2023 tax returns.
These averages may change as more returns are processed. After all, the tax season kicked off later than usual, on Jan. 29 this year. Despite a loss of seven days in comparison from 2023 early reports, the current tax season has had a strong start, the IRS said.
The IRS expects more than 128.7 million tax returns to be filed this season.
How much is the Child Tax Credit 2024?
Currently, the tax credit is $2,000 per child, but only $1,600 is refundable.
Earlier this year, Congress announced a bipartisan agreement to enhance the current child tax credit. The bill would incrementally increase the maximum refundable child tax credit to $1,800 for 2023 tax returns, $1,900 for the following year and $2,000 for 2025 tax returns.
If this agreement goes through, around 16 million children in low-income families would benefit from this child tax credit expansion, according to the Center on Budget and Policy Priorities. Lawmakers are hoping to move this bill as soon as possible.
The IRS said it is "closely monitoring" the legislation but reminds taxpayers not to wait to file their 2023 tax returns. If Congress passes any changes to the Child Tax Credit, then the IRS will automatically make adjustments for those who have filed, according to the agency.
When can I expect my tax refund?
The IRS expects most refunds to be issued in less than 21 days after filing.
Taxpayers can check the agency's "Where's My Refund?" page on IRS.gov for a status on their refunds.
When is the deadline to file taxes 2024?
Taxpayers have until April 15, 2024, to submit their returns from 2023.
For those who live in Maine or Massachusetts, the deadline is extended until April 17, 2024, due to official holidays observed in those states.
What's different this year?
Agency leadership says this year more walk-in centers will be open to help taxpayers, enhanced paperless processing will help with IRS correspondence and enhanced individual online accounts will be available for taxpayers.
Additionally, eligible taxpayers will be able to file their 2023 returns online directly with the IRS through a new, electronic direct file pilot. The IRS says it will be rolled out in phases and is expected to be widely available in mid-March.
The Associated Press contributed to this report.