The upcoming tax season is projected to bring significantly larger tax refunds for many Americans, with the IRS estimating average refunds could exceed $3,000, marking a potential increase compared to previous years. In 2023, average tax refunds were just $2,900, and many taxpayers are eagerly waiting for these increased amounts as they plan for their financial needs in 2024. IRS spokesperson, Karen Harris, stated, “These increased refunds reflect an adjustment in tax credit eligibility and the extended Child Tax Credit provisions that many families benefited from last year.”
Additionally, according to the IRS, delays and issues that plagued previous tax seasons should be reduced, meaning quicker processing times for returns and refunds this year. The possibility of more streamlined technologies at the IRS has been hinted at, with systems in place to enhance efficiency and reduce the backlog that left many waiting for their money last year. Financial experts urge taxpayers to remain informed about their eligibility for credits and to file their returns as soon as possible to ensure they maximize their refund potential.
Furthermore, markets and economic indicators suggest that larger refunds could stimulate consumer spending across various sectors early this year. The anticipation surrounding these changes indicates a positive outlook for taxpayers, which is reflected in recent surveys where nearly 70% of respondents indicated they plan to save or invest more of their refunds this year. Last year, many used their refunds to pay down debt or catch up on delayed bills due to the pandemic. The IRS encourages individuals to check their tax compliance status and utilize available resources to ensure they make the most of their refunds. This change could signal a turning point in the financial landscape, igniting more robust economic activity in the months ahead.
IRS Tax Refunds Expected to be Larger in 2024, Impacting Millions
