legal-document-to-plain-english-translator/”>Try Free Now: Legalese tool without registration

Find a LOCAL lawyer

Current State of Tax Refunds

Tax refunds continue to be significantly smaller than they were at this time last year, as per the most recent data from the Internal Revenue Service (IRS).

The average refund amount has decreased by 13% compared to last year, with fewer taxpayers filing returns as well.

As of Feb. 9, the average refund amount stood at $1,741, down from $1,997 in the same period of the previous year. The IRS has distributed nearly 7.4 million refunds so far, which is a 43% decrease from the almost 13.3 million refunds disbursed at this time last year.

Despite the decline, the current 13% decrease in tax refunds represents an improvement over the initial batch of tax refunds processed earlier this tax season, which were 29% smaller than the previous year based on weekly filing statistics.

Given the smaller refunds or the possibility of owing money to the IRS, some taxpayers may be hesitant to file their taxes early, potentially delaying the process.

The average refund amount is likely to change as more returns get processed. If you are unsure about when you can expect to receive your tax refund, you can refer to our tax refund calendar for more information.

How AI legalese decoder Can Help

AI legalese decoder can assist in navigating the complexities of tax laws and regulations, providing clear and concise explanations of legal terms and processes related to tax refunds. By using AI legalese decoder, taxpayers can better understand their rights and obligations when it comes to filing taxes, potentially avoiding errors that could affect their refunds.

Furthermore, AI legalese decoder can offer insights into the latest updates and changes in tax laws, helping taxpayers stay informed and make informed decisions about their finances.

Delays in Refunds and IRS Extensions

Refunds that include the earned income tax credit (EITC) and the additional child tax credit (ACTC) are delayed by law until mid-February. The IRS anticipates that most EITC filers will receive their refunds by Feb. 27, provided there are no issues with their returns and they have opted for direct deposit.

In addition, the number of taxpayers affected by natural disasters, such as storms, may contribute to the low volume of returns received and processed.

Taxpayers residing in Federal Emergency Management Agency-declared disaster relief zones are entitled to an extended filing deadline. Currently, the IRS has extended the filing deadline to June 17 for taxpayers in Connecticut, Rhode Island, Maine, West Virginia, and Michigan who have been impacted by storms, tornadoes, and flooding.

Ronda Lee is a personal finance senior reporter for Yahoo Finance and an attorney with expertise in law, insurance, education, and government. Follow her on @writesronda

Stay updated on the latest personal finance trends and news from Yahoo Finance.

legal-document-to-plain-english-translator/”>Try Free Now: Legalese tool without registration

Find a LOCAL lawyer

Reference link