The Internal Revenue Service (IRS) has announced that it has issued more than $100 billion in tax refunds to taxpayers so far this filing season.
A tax refund represents a reimbursement to taxpayers for any excess amount paid in taxes to the federal or state government.
The IRS processes billions of dollars in refunds annually, and timely submission of tax returns can significantly expedite the receipt of refunds.
You may also read: Using Your HSA to Cover Expenses for Your Emotional Support Animal
Key Details
According to the latest IRS data, 102.253 billion has been refunded to taxpayers during the current filing season, which began on January 27.
The average refund amount has also increased, rising from 3,213 in 2024 to 3,453, a $240 increase per taxpayer.
To date, the IRS has received over 42.7 million income tax returns, reflecting a 4.2% decrease compared to the same period last year.
However, with an estimated 163 million individual tax returns expected for the 2023 tax year, a significant portion of filings remain outstanding.
Refund Processing Timelines
Taxpayers who file complete and accurate paper returns can typically expect their refunds within six to eight weeks from the date the IRS receives the return. For electronically filed returns, refunds are generally issued in under three weeks, with direct deposit further accelerating the process.
The IRS strongly recommends electronic filing combined with direct deposit for the fastest refund turnaround.
Taxpayers can select direct deposit through their tax software by entering their bank account and routing numbers or by informing their tax preparer of their preference.
“Combining direct deposit with electronic filing is the fastest way to receive your refund,” the IRS states on its website. “This method eliminates the risk of refunds going uncashed, being lost, stolen, or destroyed.”
This year, over 41 million taxpayers have already chosen to file their returns electronically, reflecting the growing preference for digital submission over paper filing.
IRS: How to Check Refund Status
Taxpayers awaiting their refunds can track the status using the IRS’s “Where’s My Refund?” online tool. The tool provides updates based on the following timelines:
- 24 hours after e-filing a current-year return.
- 3 to 4 days after e-filing a prior-year return.
- 4 weeks after filing a paper return.
The “Where’s My Refund?” tool displays three stages of refund processing:
- Return Received: The IRS has received the return and is processing it.
- Refund Approved: The refund has been approved, and the IRS is preparing to issue it by the specified date.
- Refund Sent: The refund has been disbursed to the taxpayer’s bank account or mailed. Direct deposit refunds may take up to five days to appear in bank accounts, while mailed checks could take several weeks to arrive.
Upcoming Deadlines and Penalties
The nationwide tax filing deadline for most taxpayers is April 15, 2024.
Filing after this date may result in penalties, including a 5% monthly penalty on unpaid taxes, up to a maximum of 25% of the total tax due.
Taxpayers are encouraged to file their returns promptly and utilize electronic filing and direct deposit to ensure the fastest possible refund processing.