STATEN ISLAND, N.Y. — Americans are receiving, on average, more than $3,000 back on their annual tax returns this year.
Through March 22, the most recent date currently available, the agency has issued 54,990,000 refunds, roughly 7.3% fewer than the 59,342,000 that had been issued by this time last year, according to the latest Internal Revenue Service (IRS) data.
The reason for the reduction in refunds issued to date is a simple one; the agency officially began processing tax returns one week later this year, with the 2023 filing season beginning on Jan. 23 and the 2024 filing season beginning on Jan. 29.
The average refund amount through March 22 was $3,081, roughly 6.1% higher than the average refund of $2,903 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 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