Average U.S. tax refund rises to $3,324

Americans are seeing larger tax refunds this year compared to last year. The average refund is now $3,324, which is up 5.7% from the average of $3,145 at the same time last year. This increase is based on data from the Internal Revenue Service (IRS) as of March 7. So far, the IRS has issued about 43.6 million refunds, which is about 1.5% more than the number issued last year. A significant rise in refund amounts occurred after the IRS started processing refunds for those claiming the Earned Income Tax Credit and the Additional Child Tax Credit. Due to a law called the Protecting Americans from Tax Hikes Act, the IRS could not issue these refunds before mid-February. Taxpayers can track their refund status using the IRS "Where’s My Refund" tool or the IRS2Go mobile app. This service will give updates about when refunds are processed and sent. For those who filed online, the status is typically updated within a day. Direct deposits take about five days, while checks in the mail may take several weeks to arrive. The IRS has also announced changes to income tax brackets for the 2024 tax year. While tax rates remain the same, the thresholds for these brackets will be adjusted. Additionally, the standard deduction is increasing; it will go from $13,850 to $14,600 for single filers and from $27,700 to $29,200 for married couples filing jointly.