As we approach tax season in 2024, if you’re expecting a refund, be prepared for a potential dip in the amount compared to last year. The impact of high inflation rates is evident, resulting in a decrease in average refunds compared to the previous tax season.
As of April 7, over 100 million taxpayers who have filed experienced an average refund reduction of 9.3% from the previous year. This decline is attributed, in part, to the expiration of certain pandemic relief programs.
Recent data from the IRS reveals that the average refund now stands at $2,878, marking a decrease of nearly $300 from the previous year’s average of $3,175.
For numerous households, especially those belonging to working families, the tax refund typically represents a significant one-time financial gain. Kathy Pickering, Chief Tax Officer of H&R Block, emphasizes the importance of recognizing this shift, as the landscape of tax refunds undergoes changes in response to evolving economic circumstances.
