Many Americans look forward to the money they receive each year through their tax refunds. The average amount received by Americans fluctuates from year to year for a variety of reasons. There are many factors that go into how much one receives in a tax refund, but the main component is how much is paid to the government in taxes the previous year.
Tax refunds won’t be received until after a taxpayer files a tax return. If you want to know how to get your refund back quickly, how much you’ll receive and a look into the history of tax refunds, the answers can all be found here.
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1. Can I calculate how much I’m getting back?
The short answer is yes. You can calculate (approximately) how much your refund will be before you receive it.
The easiest way to do this is through the many refund calculators available online. All you have to do is fill out your financial information and a refund amount will be provided to you. While this number may not be exact, it can give you a good idea of what you can expect to get back in your refund.
Some companies that have online refund calculators are TurboTax, H&R Block and NerdWallet.
2. What are tax refunds?
A tax refund is the money that you get back after filing your taxes. You receive a refund if you had too much money withheld and overpaid your taxes the previous year.
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3. When should I expect my refund?
There is no exact answer to this question because not everyone gets their refund at the same time. How quickly you get your refund has a lot to do with how quickly you file, how you file and how you choose to receive your refund.
The first tip is to file your taxes as soon as you can. The faster you file, the faster you can expect that refund to hit your bank account.
While the speed at which you file is important, the accuracy of your information is also extremely important. If there is any information that is not correct or further information is needed, it could take more than 120 days to process the refund, according to the IRS. If there are any issues, you will receive a letter from the IRS.
According to the IRS, filing your taxes electronically is the most efficient method.
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Another important factor is choosing to receive your refund through direct deposit. According to Tom O’Saben, the director of tax content and government relations at the National Association of Tax Professionals, choosing direct deposit can shave off some of the time it takes to get your refund. O’Saben told Fox Business choosing direct deposit could speed up your refund by 10 days.
So when can you expect your refund? If filed electronically, accurately and you choose direct deposit for your refund delivery, you can expect to have the money within 21 days.
4. Can I check my refund status online?
Yes, you can check your refund status online or even through an app on your phone.
There is a “Where’s My Refund” tab on the IRS website you can go to check the status of your refund. To do this, you will need to have your Social Security number, taxpayer ID number, filing status and the exact refund amount on your return handy.
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There is also a way to check your refund status on the IRS2Go mobile app.
5. The history of tax refunds
When tax season rolls around, the average amount Americans receive in their refund does change and there are a variety of reasons for that change.
For example, when we look at 2023 refunds vs. 2022, the IRS warned Americans early they would likely receive a smaller refund in 2023 than they received in 2022. The average 2023 refund was $1,963, down from the average of $3,176 in 2022, according to Fox Business. In 2021, the average was $2,800.
“Taxpayers will not receive an additional stimulus payment with a 2023 tax refund because there were no economic impact payments for 2022,” the IRS said.
When looking at tax numbers in past years pre-pandamic, the numbers have looked, for the most part, very similar. The average U.S. tax return amounts from 2008 to 2017, based on data from the IRS and 20somethingfinance.com.
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