If you have already filed your taxes and received your refund you might have noticed something: it’s quite a bit smaller. According to the IRS, the average refund received this year is $2,252, that’s compared to the $3,265 average from last year. Veuer’s Tony Spitz has the details.
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00:00If you've already filed your taxes and received your refund, you might have noticed something.
00:04It's quite a bit smaller. According to the IRS, the average refund received this year is $2,252.
00:11That's compared to the $3,265 average from last year, meaning the average tax refund for the 2024
00:18calendar year is down 31%, or roughly $1,000. So what gives? Well, there are a couple of reasons.
00:24The first is that refunds for earned income tax credits and additional child tax credits
00:29have not been issued yet, meaning the refunds that were filed before mid-February do not include
00:34either of those, and the average should shift upwards as tax season continues. Early filers
00:38should expect to already be seeing those roll out. Tax refunds should also increase, as standard
00:43deductions have increased across the board. That means a $14,600 standard deduction for single
00:49filers, up from $13,850 in 2023, and a $29,200 standard deduction for married couples filing
00:57jointly, up from $27,700 in 2023. Tax brackets have also been adjusted to accommodate higher
01:04inflation. So what does this all mean? Well, despite early lower-than-last-year returns,
01:08things should turn around by the end of the tax season.