Wyoming to receive highest average tax refunds again

Wyoming residents are expected to receive the highest tax refunds in the United States again this year. This marks the fifth consecutive year that they have topped the list. According to LendingTree, the average tax refund in Wyoming is projected to be $6,367. Florida and the District of Columbia follow with average refunds of $5,934 and $5,848, respectively. As the tax filing deadline approaches on April 15, the IRS anticipates that over 140 million Americans will file their individual returns for the 2024 tax year. Most refunds are typically issued within 21 days. However, due to budget cuts and layoffs at the IRS, there may be delays in processing some returns. LendingTree found that 75 percent of Americans plan to file a federal tax return this year. Among them, 42 percent are financially relying on their refund, an increase from 40 percent last year. The reliance is particularly high among parents with children under 18, millennials aged 29 to 44, and those earning less than $30,000. The average tax refund for the 2022 tax year was $4,381, which is the highest amount in five years. This marks a steady increase since 2018. LendingTree highlighted the growing average refunds in their report, indicating a positive trend for filers. LendingTree’s chief analyst noted that receiving a large tax refund may not be ideal. He suggested adjusting withholdings to better manage personal finances. This way, taxpayers can retain more of their income throughout the year rather than receiving a large refund. As the IRS plans to reduce its workforce by 20 percent after the filing deadline, concerns about potential delays remain. Despite this, LendingTree believes that many taxpayers may receive bigger refunds than expected this year.