With tax season in full swing, taxpayers across the country are already receiving their refunds. As of February 3rd, the IRS has issued nearly 8 million refunds for a total of about $15.7 billion. This number is sure to skyrocket when the April 18th deadline rolls around once again.
Average Payout Per Taxpayer
On average, each taxpayer received $1,963, which is down from last year’s average of $2,201 at the same point of the filing season. However, it is worth noting that the number can fluctuate to be higher or lower as the IRS continues to process millions of returns before the April 18th, deadline.
As of February 3rd, the IRS has processed more than 16.7 million returns, which is 29% more than the previous year at this point of the filing season. The 8 million refunds are also up from the previous 4.3 million we saw last year. According to Bill Smith, national director of tax technical services at CBIZ MHM’s national tax office, almost 85% more refunds were issued this season, reducing the average refund size.
IRS Expects to Boost Efficiency
For this tax season, the agency entered with a much larger customer service team to go along with advanced technology. They are finally beginning to spend some of that $80 billion in funding from the Inflation Reduction Act that congress approved in August of 2022. “We have begun to see the light at the end of the tunnel,” National Taxpayer Advocate Erin Collins wrote in her January report to Congress. “I am just not sure how much further we have to travel before we see sunlight.”
Wrap Up
Tax season is officially here and the IRS continues to pump out billions of dollars in returns to taxpayers. The agency seems to finally be putting that $80 billion in funding to use which is great news for everyone to better ensure a quick and efficient process. If you need any tax return help, a DSJ professional is just one phone call away.