On Friday, the IRS released statistical data that gave taxpayers a glimpse into the start of the tax season.
The IRS began accepting tax returns Jan. 24 and the average refund as of Feb. 4 was $2,201.
4.3 million returns have generated federal income tax refunds, resulting in a total refund of $9.53 billion, AOL reported.
Nearly 16.7 million returns had been received as of Feb. 4, and 13 million individual income tax returns had been filed already, according to IRS data.
The IRS is facing a heavy backlog of unprocessed 2020 tax returns that remained untouched from last year.
According to IRS statistics, about 4.46 million refunds were issued via direct deposit. The average refund was $2,306.
In spite of this, IRS footnotes say that direct deposit refunds are included in this category for returns received in the prior year or current year but processed in 2022 with direct deposit requests.
Do Early Figures Compare Favorably With last Year’s?
Last year, the IRS started processing tax returns late and did not begin processing returns until Feb. 12, 2021. Thus, a comparison between years is not possible at this time.
Tax refunds that include the Earned Income Tax Credit or Additional Child Tax Credit cannot be issued by the IRS until after Feb. 15.
To combat the growth of fraudulent returns that try to capitalize on the big refunds generated by these credits, Congress gave the IRS an extension of time. In 2015, the law took effect.
Not all those who filed early will receive their refund right away.
According to IRS alerts, individuals claiming the Earned Income Tax Credit can expect their refunds to arrive in their bank accounts or debit cards by the first week of March.
Due to the fact that tax seasons aren’t all the same, it can be challenging to track trend lines.
“For historical perspective, it’s important to remember these weekly numbers can shift dramatically during the initial weeks of filing season due to numerous factors, including the calendar and filing patterns that can change year to year,” IRS statement.