Tax season is well underway, and many Americans are eagerly awaiting their refund check from the IRS.
To receive a refund within 21 days of filing, the IRS has cautioned filers they must submit returns electronically, ensure that they are accurate and complete and request to receive the refund via direct deposit.
If you have already filed your taxes and want to check the status of your refund, there is an easy way to do so. The IRS has set up a "Check My Refund Status" tool for people to quickly track the status of their tax refund.
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The information is all available 24 hours after you have filed your taxes electronically, or three to four weeks after submitting a paper return. The IRS updates the information once a day, overnight.
To use the tool, you need to provide your Social Security number, filing status and exact refund amount.
The average refund check so far this year is worth $1,395 as of Feb. 2, about 29% lower compared to the $1,963 average recorded last year. That is based on nearly 2.6 million tax refunds collectively worth about $3.65 billion.
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However, the IRS has cautioned taxpayers the average refund amount will likely change in the coming months as more returns are processed.
Americans who expect to receive the earned income tax credit, a tax break for low- to moderate-income workers, or the child tax credit cannot legally receive their refund before mid-February, which could also be distorting the picture.
The decrease in refund size can be concerning to millions of Americans who depend on the influx of money from Uncle Sam to make major purchases, save for retirement or pay off debt. On top of that, millions of taxpayers are still struggling with high inflation, which has sent the cost of staples like food and rent soaring higher.
Taxpayers typically receive a refund if they had too much money withheld and overpaid their taxes the previous year. For many families, the money can be substantial. Nearly three-quarters of filers received a tax refund in 2023, with an average payment worth about $3,176, down about 3% from the previous year.
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Some tax experts say refunds could end up being much bigger in 2024, with some people receiving up to 10% more than they did last year. That would amount to a roughly $300 to $400 increase.
"For anybody whose income did not outpace inflation, they should do better," Mark Steber, chief tax information officer at Jackson Hewitt, told FOX Business. "It's not even voodoo or marketing spin, it's pretty much just science."
Most taxpayers will have until Monday, April 15, to submit their returns or request an extension.
The IRS expects to receive more than 128.7 million individual tax returns by this year's deadline.
