STATEN ISLAND, N.Y. — The average American is receiving more money back on their annual tax return than they did last year.
Through March 1, the most recent date currently available, the agency has issued 36,288,000 refunds, nearly 14% fewer than the 42,040,000 that had been issued by this time last year, according to the latest Internal Revenue Service (IRS) data.
The reason for the dramatic reduction in refunds issued to date is a simple one; the agency officially began processing tax returns one week later this year than it did in 2023.
“Because the 2023 filing season began on Jan. 23, the IRS had been receiving returns for 40 days by Feb. 23, 2023; compared to only 33 days for the 2024 filing season, which opened on Jan. 29. Considering the loss of 7 days in this comparison, filing season statistics below continue to show a strong start to Filing Season 2024, with all systems running well,” according to the IRS.
The average refund amount through March 1 was $3,182, roughly 5.1% higher than the average refund of $3,028 at that time last year.
Through Feb. 9, the average had been just $1,741, but has increased dramatically now that the IRS has begun issuing refunds to taxpayers who claimed the the Earned Income Tax Credit or Additional Child Tax Credit, the refundable portion of the Child Tax Credit.
Due to the Protecting Americans from Tax Hikes (PATH) Act, which took effect during the 2017 filing season, the IRS legally cannot issue refunds or credits to anyone who claimed an Earned Income Tax Credit or Additional Child Tax Credit before Feb. 15, with the agency expecting those who claimed those credits to receive their direct deposit refunds by Feb. 27.
The policy was implemented “to help prevent revenue loss due to identity theft and refund fraud related to fabricated wages and withholdings,” according to the IRS.
TRACKING YOUR REFUND
If you’re one of the millions of Americans who have already sent in their tax returns, there are online portals that will allow you to monitor the status of your refund.
For federal taxes, residents can use the IRS “Where’s My Refund” tool or the IRS2Go mobile app to see when their refunds have been received, processed and sent.
Refund status will appear roughly 24 hours after you e-file a current-year return, three or four days after you e-file a prior-year return or four weeks after you file a paper return.
To access the information, which is updated overnight each day, residents must provide their Social Security or individual taxpayer ID number (ITIN), filing status and exact refund amount on their return.
Once refunds are sent, those using direct deposit should receive their refund within five days, while those expecting checks in the mail may have to wait several weeks.
For state taxes, New Yorkers can visit the Department of Taxation and Finance website and click “Check refund status.”
This allows residents to see if their return has been received; when it’s being processed; if the return requires additional review; if the state requires additional information; if a requested refund amount has been adjusted and when a refund has been issued.
NEW TAX INCOME BRACKETS
While tax rates have remained the same as last year, the IRS has announced new brackets with adjusted thresholds, boasting upper limits that are 7% higher than last year.
In addition to the new tax brackets, the standard deduction, the amount you can deduct to adjust the amount of income on which you’re taxed, has also increased from $12,950 to $13,850 for single filers and from $25,900 to $27,700 for married couples filing jointly.
Here’s a look at the new tax brackets that will be used when filing in 2024.
MARGINAL TAX BRACKETS FOR SINGLE FILERS
- $11,000 or less in taxable income – 10% of taxable income
- $11,001 to $44,725 in taxable income – $1,100 plus 12% over $11,000
- $44,726 to $95,375 in taxable income – $5,147 plus 22% over $44,725
- $95,376 to $182,100 in taxable income – $16,290 plus 24% over $95,375
- $182,101 to $231,250 in taxable income – $37,104 plus 32% over $182,100
- $231,251 to $578,125 in taxable income – $52,832 plus 35% over $231,250
- $578,126 or more in taxable income – $174,238 plus 37% over $578,125
MARGINAL TAX BRACKETS FOR MARRIED COUPLES FILING JOINTLY
- $22,000 or less in taxable income – 10% of taxable income
- $22,001 to $89,450 in taxable income – $2,200 plus 12% over $22,000
- $89,451-$190,750 in taxable income – $10,294 plus 22% over $89,450
- $190,751-$364,200 in taxable income – $32,580 plus 24% over $190,750
- $364,201 to $462,500 in taxable income –$74,208 plus 32% over $364,200
- $462,501 to $693,759 in taxable income – $105,664 plus 35% over $462,500
- $693,751 or more in taxable income – $186,601 plus 37% over $693,750