The newest Internal Revenue Service (IRS) statistics indicates that Americans are receiving smaller tax returns this year.
As of February 9, the most recent date provided on the IRS website, the agency has issued 7,483,000 refunds, which is almost 44% lower than the 13,341,000 refunds issued by the same time last year.
The substantial drop in refunds issued so far can be attributed to the agency starting to process tax returns one week later this year compared to 2023.
Since the 2023 filing season began on Jan. 23, the IRS has received returns for 19 days by Feb. 10, compared to 12 days for the 2024 season, which began on Jan. 29. The IRS reports a great start to filing season 2024, with all systems working smoothly, despite the seven-day difference. The average return through Feb. 9 was $1,741, down 13% from last year’s $1,997.
As the IRS issues refunds to people who claimed the Earned Income Tax Credit or Additional Child Tax Credit, the refundable element of the Child Tax Credit, the average return amount is projected to rise in the coming weeks.
The Protecting Americans from Tax Hikes (PATH) Act, which took effect during the 2017 filing season, prohibits the IRS from issuing refunds or credits to those who claimed an Earned Income Tax Credit or Additional Child Tax Credit before Feb. 15. The agency expects direct deposit refunds by Feb. 27.
IRS Regulations for Identity Theft Prevention
The IRS said the regulation was adopted “to help prevent revenue loss due to identity theft and refund fraud related to fabricated wages and withholdings.”
For the millions of Americans who have filed their taxes, internet portals let you track your refund. The IRS “Where’s My Refund” application and IRS2Go smartphone app allow residents to track federal tax returns.
You’ll see refund status 24 hours after e-filing a current-year return, 3-4 days after a prior-year return, or 4 weeks after a paper return.
Residents must give their Social Security or ITIN, filing status, and refund amount on their return to access the overnight-updated information. Direct deposit reimbursements should arrive within five days, but mail-in refunds may take weeks.
New Yorkers can click “Check refund status” on the Department of Taxation and Finance website for state taxes.
This lets residents know whether their return was received, when it’s being processed, if the state needs more information, if a refund amount was amended, and when a refund was granted.
New tax brackets
The IRS has released new tax categories with modified thresholds, featuring upper limits that are 7% higher than the previous year, even though tax rates have stayed the same.
Besides the new tax rates, the standard deduction has increased from $12,950 to $13,850 for solo taxpayers and from $25,900 to $27,700 for married couples filing jointly.
New tax rates for 2024 filings are below:
Taxable Income Charts for Single and Married Couples
Single Filers:
- $11,000 or less – 10% of taxable income.
- $11,001 to $44,725 – $1,100 plus 12% over $11,000.
- $44,726 to $95,375 – $5,147 plus 22% over $44,725.
- 95,376 to $182,100 – $16,290 plus 24% over $95,375.
- 182,101 to $231,250 – $37,104 plus 32% over $182,100.
- 231,251 to $578,125 – $52,832 plus 35% over $231,250.
- $578,126 or more – $174,238 plus 37% over $578,125.
Married Couples Filing Jointly:
- $22,000 or less – 10% of taxable income.
- $22,001 to $89,450 – $2,200 plus 12% over $22,000.
- 89,451-$190,750 – $10,294 plus 22% over $89,450.
- $32,580 to $364,200 – $32,580 plus 24% over $190,750.
- 364,201 to $462,500 – $74,208 plus 32% over $364,200.
- 462,501 to $693,759 – $105,664 plus 35% over $462,500.
- $186,601 or more – $186,601 plus 37% over $693,750.
