New data from the Internal Revenue Service (IRS) indicates that the average tax refund has grown over the past year. For the 2024 tax season, which wrapped up on April 25, the average refund rose by 3.3%, increasing from $2,852 to $2,945.
In contrast, the total amount of refunds climbed more modestly, up 2% from $260 billion to $265 billion compared to last year. Interestingly, the total number of refunds issued dropped by 1.3%, from 91.3 million to 90.2 million.
The IRS also noted improvements in tax collection efficiency this year, with receipts projected to grow by over 5%.
The majority of refunds, around 84.8 million out of the 90.2 million total, were processed through direct deposits, a slight increase of 0.1% from last year. The total refunds reached approximately $256 million, with average direct deposits rising by about 2.7% to $3,023.
There are roughly 20,000 IRS employees weighing an acquisition offer.
On the whole, the IRS received over 142.5 million tax returns this year, marking a 0.9% increase. They also processed more than 140.2 million returns, which is a 1.4% rise from the previous year.
Taxpayers submitted their returns either independently or through professionals. About 73.5 million returns were filed electronically by tax experts, up 1.7% from a year ago. Meanwhile, nearly 64.1 million were self-prepared, reflecting a 0.9% increase.
Recent IRS statistics suggest that overall processed revenue rose by 1.5%, while total tax revenue is up 5% compared to last year.
“We’re working on making the Treasury more efficient. This isn’t just a phrase; the data backs up our efforts to ensure the IRS benefits Americans,” said an IRS spokesperson.
The next objective is to move President Trump’s tax agenda forward with support from both House and Senate Republicans.
