IRS Has Paid $115B in Refunds in the First Month of Income Tax Filing – CNET [CNET]

The IRS is continuing to catch up with 2023’s numbers. Here’s everything you need to know about this year’s filing stats.

The IRS is continuing to catch up with 2023’s numbers. Here’s everything you need to know about this year’s filing stats.

The 2024 tax season is just over a month old, with the season having kicked off on Jan. 29. The amount of tax refund money the IRS has sent out is picking up, even though the total number of refunds sent so far in 2024 is continuing to lag behind the numbers for the same period in 2023.

Taxpayers can normally expect to receive a refund within 21 days if they file electronically and choose direct deposit, the IRS said. But by March 1, four weeks into tax filing season, the IRS had issued more than 36.2 million refunds. By comparison, the IRS had sent out over 42 million refunds by March 3, 2023. 

Tax season last year started six days earlier, however, on Jan. 23, so the IRS had nearly a week longer to receive and process tax returns and send refunds. Though, it seems that the agency is beginning to catch last year’s numbers. 

Here’s how the IRS is doing this year. For more on taxes, check out our essential 2024 tax filing cheat sheet, how to track your refund with the IRS and the best tax software for 2024.

How many tax returns has the IRS processed so far in 2024? 

As of March 1, the IRS said it had processed 53.2 million federal income tax returns, down by 2.0% from the 54.3 million it got through this time last year. With tax season starting earlier in 2023 — Jan. 23 versus Jan. 29 — filers had six more days last year to send in their tax returns.

The IRS had also received 54 million returns by March 1, down only 1.7% from the 54.9 million it received by March 3, 2023.

Of the 54 million returns received so far, just over 52.7 million of those were filed electronically, the IRS said — 24.5 million from professional tax preparers and another 28.2 million from self-preparers.

How many tax refunds has the IRS issued so far? 

The IRS has issued more than 36.2 million refunds as of March 1, down by 13.7% from the 42 million it had sent out by March 3, 2023. 

In the first five weeks of this tax year, the IRS refunded over $115.4 billion — down by 9.3% from the $127.3 billion sent out by March 3 last year. Again, the 2023 tax season began six days earlier.

How do 2024’s tax refunds stack up to 2023’s so far?

The average refund size is up by 5.1%, from $3,028 for 2023’s tax season through March 3, to $3,128 for this season through March 1.

While the average refund size is up so far compared to the same time last year, the IRS told CNET that making year-to-date comparisons can be tricky because of how much earlier it started last year. The agency did say the 2024 tax season is off to a strong start, with all systems running well. 

Of those who received refunds, 35.3 million chose direct deposit, and their refund was $3,244. By comparison, for the same time period last year, 39.9 million direct depositors had already received their return, which averaged $3,115.

For more, here are the dates you need to know to get you through this tax season. For more on taxes, here’s how to set up an account on the IRS website and what to know about this year’s child tax credit.