The latest IRS data show that the average federal tax refund is approximately $3,182. That’s more than $140 (5.1%) higher than it was at this time last year. But that doesn’t mean everyone will get a bigger tax refund from the IRS this year. Here are some reasons your refund could be more — or less — than last year.
2024 tax refund
IRS inflation-adjusted amounts could partially account for higher refunds in 2024. For example, 2023 standard deduction amounts increased by more than 6%, and federal income tax brackets also increased, so taxpayers who received only small raises (or none at all) may see a big difference in their 2023 tax liability when they file.
Families with lower incomes could see a significant increase in refund amounts too, even if they don’t benefit from the higher standard deduction. The maximum earned income tax credit (EITC) amount increased by nearly $500 for the 2023 tax year. And because the credit is 100% refundable, eligible taxpayers could receive the entire amount (up to $7,430) back as a tax refund.
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What about the child tax credit? If the new child tax credit (CTC) becomes law this year, some families could receive even more money back as a tax refund.
However, the bipartisan tax bill, which includes an expansion to the CTC, is currently stalled in the Senate. So, there is no guarantee that the bill will become law before the end of the 2024 filing season — if at all.
What could cause a lower tax refund? There are several reasons your federal tax refund could be less this year.
- If your dependent child turned 17 in 2023, they won’t qualify for the CTC.
- Other major events, such as getting a divorce or an adult dependent moving out of the home, can decrease your refund amount.
- If you (or a spouse if filing jointly) had a significant increase in income, you could be disqualified from claiming certain credits.
- Underpaying when you made estimated tax payments for 2023 will increase your tax liability when you file.
There are many more reasons you could see your tax refund decrease (or your tax bill increase) in 2024. So, you may see a difference in your refund this year, even if none of the above events apply.
IRS refund schedule
While several “IRS refund schedules” are available online, the dates on those schedules are estimates. Some tax returns take longer to process than others, and several things, including incomplete returns and refunds that need adjusting, can cause processing delays.
However, the IRS issues refunds for most e-filed returns within three weeks. (Processing can take up to eight weeks for paper returns). E-filing and choosing to receive your refund via direct deposit remain the best options for receiving your refund sooner. You can begin checking the status of your tax return with ‘Where’s My Refund’ within 24 hours of IRS acceptance.
Where's my refund
To access the "Where's My Refund" tool, you need to enter your Social Security number or individual taxpayer identification number (TIN), the filing status used on your federal income tax return, and the exact whole dollar refund amount shown on your return. You can use either spouse's Social Security number if you filed a joint return.
'Where's My Refund' is only updated once per day — usually at night — so there's no need to check your status more often than that.
For more information see: Where's My Refund? How to Track Your Tax Refund Status.
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FAQs
As far as dollar signs go, that's over $150 higher than last year's average refund as of the first week of March. The increase is likely due to tax bracket changes the IRS made to counteract inflation after the 2023 filing season.
Why is my tax refund so much higher this year? ›
So far in 2024, the average federal income tax refund is $2,850, an increase of 3.5% from 2023. It's not entirely unexpected: To adjust for inflation, the IRS raised both the standard deduction and tax brackets by about 7%.
Is it possible to get a $10,000 tax refund? ›
You could end up with a $10,000 tax refund if you've paid significantly more tax payments than you owe at the end of the year.
How to get $7000 tax refund? ›
Requirements to receive up to $7,000 for the Earned Income Tax Credit refund (EITC)
- Have worked and earned income under $63,398.
- Have investment income below $11,000 in the tax year 2023.
- Have a valid Social Security number by the due date of your 2023 return (including extensions)
But if you're one of the folks who still itemizes your deductions, your tax bill could be a little bigger this year. That's because some of your deductible expenses might be lower than last year—or you didn't have those expenses at all.
How much tax return should I expect if I make $40,000? ›
If you make $40,000 a year living in the region of California, USA, you will be taxed $7,507. That means that your net pay will be $32,493 per year, or $2,708 per month.
What is the average tax return for a single person making $60,000? ›
If you make $60,000 a year living in the region of California, USA, you will be taxed $13,653. That means that your net pay will be $46,347 per year, or $3,862 per month.
How are people getting large tax refunds? ›
You can increase the amount of your tax refund by decreasing your taxable income and taking advantage of tax credits. Working with a financial advisor and tax professional can help you make the most of deductions and credits you're eligible for.
Who has the highest tax refund? ›
States with the biggest tax refund
According to Lending Tree, Wyoming had the highest average tax refund for several years in a row. This information was based on an analysis of individual income tax returns from the 2020 tax year—that's the latest tax year currently reported by the IRS's SOI information.
How much should I get back in taxes if I made $50,000? ›
If you make $50,000 a year living in the region of California, USA, you will be taxed $10,242. That means that your net pay will be $39,758 per year, or $3,313 per month.
Some people in California who have been left out will finally be getting their inflation relief payments this month. The Franchise Tax Board confirmed that 5,000 payments will be issued by the end of September for those who were never issued a payment.
Is it better to claim 1 or 0 on your taxes? ›
Claiming 1 on your tax return reduces withholdings with each paycheck, which means you make more money on a week-to-week basis. When you claim 0 allowances, the IRS withholds more money each paycheck but you get a larger tax return.
Will 2024 tax refunds be higher? ›
Because of that, workers whose pay didn't keep up with last year's high inflation are on track to get bigger tax refunds, with some likely to receive up to 10% more in 2024, Jackson Hewitt chief tax information officer Mark Steber told CBS MoneyWatch earlier this year.
Why is my 2024 refund so low? ›
You may be in line for a smaller tax refund this year if your income rose in 2023. Earning a lot of interest in a bank account could also lead to a smaller refund. A smaller refund isn't necessarily terrible, since it means you got paid sooner rather than loaning the IRS money for no good reason.
Do you get a bigger tax refund if you make less money? ›
Specifying more income on your W-4 will mean smaller paychecks, since more tax will be withheld. This increases your chances of over-withholding, which can lead to a bigger tax refund. That's why it's called a “refund:” you are just getting money back that you overpaid to the IRS during the year.
Is it better to owe taxes or get a refund? ›
“The best strategy is breaking even, owing the IRS an amount you can easily pay, or getting a small refund,” Clare J. Fazackerley, CPA, CFP, told Finance Buzz. “You don't want to owe more than $1,000 because you'll have an underpayment penalty of 5% interest, which is more than you can make investing the money.
Is everyone getting a smaller tax refund in 2024? ›
Tax refunds for some taxpayers may be bigger in 2024 thanks to the inflation adjustments the Internal Revenue Service made to tax brackets implemented in 2023, along with increased standard deductions.
What is the average tax refund for $75000? ›
Which income bracket got the biggest refund?
| Income level | Average refund | % of income |
|---|
| $25,000 to $49,999 | $2,845.81 | 5.7% to 11.4% |
| $50,000 to $74,999 | $2,830.10 | 3.8% to 5.7% |
| $75,000 to $99,999 | $3,347.69 | 3.3% to 4.5% |
| $100,000 to $199,999 | $4,436.36 | 2.2% to 4.4% |
3 more rowsApr 14, 2024
States with the largest/smallest average refunds for tax year 2021
| Rank | State | Average refund |
|---|
| 6 | Nevada | $4,884 |
| 7 | Connecticut | $4,877 |
| 8 | Texas | $4,753 |
| 9 | California | $4,671 |
6 more rowsMar 11, 2024
