New data from the Internal Revenue Service (IRS) shows the size of the average tax refund received by taxpayers is up from a year ago.
IRS data for the 2024 tax filing season through the week that ended on April 25 showed the average tax refund amount is up 3.3% from last year’s filing season, rising from $2,852 to $2,945.
The total amount refunded grew at a slower 2% pace, rising from $260 billion to $265 billion over last year.
The total number of tax refunds issued by the IRS is down 1.3% in the current filing season when compared with a year ago, having fallen from 91.3 million to 90.2 million in that period.
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Direct deposit was used for the vast majority of refunds issued, with nearly 84.8 million of the 90.2 million refunds paid directly to taxpayers’ accounts. That percentage was virtually unchanged from a year ago, rising by just 0.1%.
The total amount refunded rose by 2.8% to $256 billion, while the average direct deposit amount rose at a similar rate of 2.7% to $3,023.
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Overall, the IRS reported a 0.9% rise in the number of tax returns received from a year ago to more than 142.5 million. The number of returns processed by the IRS rose 1.4% from last year to more than 140.2 million.
Taxpayers were divided between filing self-prepared returns and those prepared by tax professionals. Nearly 73.5 million returns were e-filed by tax professionals, up 1.7% from last year, while there were almost 64.1 million self-prepared returns, an increase of 0.9% from last year.
IRS data shared with FOX Business last week showed the total number of returns processed was up 1.5%, while total tax receipts are up 5% from last year.
“We are making Treasury efficient again. This isn’t just words on paper. The data backs the great work that we’re doing to make sure that the IRS works for the American people, not against them,” Deputy Treasury Secretary and Acting IRS Commissioner Michael Faulkender told FOX Business.
“Our next goal will be to usher President Trump’s tax agenda across the finish line with the unified help of both House and Senate Republicans so we can continue to put more money back into the pockets of hardworking Americans,” he added.
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