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
Quick Answer
Why is my tax return so much higher this year? ›
It's not entirely unexpected: To adjust for inflation, the IRS raised both the standard deduction and tax brackets by about 7%. That put some people into lower brackets and let taxpayers who weren't itemizing deduct more of their income.
Why is my tax refund larger than expected? ›
Yes, there are several factors that could change the amount of your tax refund - resulting in either a larger or smaller refund than expected. Examples that could increase your refund are math errors and other mistakes on your return.
How to get a $10,000 tax refund? ›
How do I 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)
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 30k back on taxes? ›
The Department of Community Services and Development encourages Californians earning under $30,000 a year to file their taxes to claim the California Earned Income Tax Credit (CalEITC), a cash-back tax credit, and receive a larger tax refund.
Why is my 2024 refund so low? ›
If a taxpayer refund isn't what is expected, it may be due to changes made by the IRS. These changes could include corrections to the Child Tax Credit or EITC amounts or an offset from all or part of the refund amount to pay past-due tax or debts. More information about reduced refunds is available on IRS.gov.
What is the average tax refund for 2024? ›
15. Since the start of the January tax season, the IRS has delivered more than $200 billion in refunds through early April. The average refund was $3,011, a 4.6% increase from last April's average of $2,878.
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.
Which filing status gives the biggest refund? ›
If you're able to file as a head of household it could give your refund a significant boost. For example, heads of household get a larger standard deduction than single filers.
How to get the highest refund? ›
Here are some actions you can take that can help you get the most back on taxes:
- Itemize your deductions. ...
- Contribute to tax-advantaged accounts. ...
- Ensure you are claiming the right credits. ...
- Adjust your filing status.
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 do I owe taxes if I claim 0? ›
You should not claim too many allowances, or you might end up having to pay the IRS. Claiming 0 allowances means that too much money will be withheld by the IRS. The allowances you can claim vary from situation to situation. If you are married with a kid, you can claim up to three allowances.
How much can you get back in taxes with no dependents? ›
2020-2022 earned income credit amounts
| Number of children | Maximum earned income tax credit | Max AGI, single or head of household filers |
|---|
| 0 | $560 | $16,480 |
| 1 | $3,733 | $43,492 |
| 2 | $6,164 | $49,399 |
| 3 or more | $6,935 | $53,057 |
Apr 18, 2024
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.
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
If you make $20,000 a year living in the region of California, USA, you will be taxed $2,687. That means that your net pay will be $17,313 per year, or $1,443 per month.
