Tax refunds are bigger, but fewer people are getting them

The big picture: Nearly 66.8 million refunds had been processed as of April 5, compared to 69.1 million through April 7, 2023, IRS data shows. That's a difference of 2.3 million tax refunds, a 3.3% decline.

• The average refund was $3,011 through April 5, compared to $2,878 for refunds processed through April 7, 2023 — a 4.6% increase.

Zoom in: There's no clear explanation for why fewer people would be getting refunds this year, and those numbers could change once last-minute returns are accounted for.

• Annual tax adjustments, including new tax brackets, an increased standard deduction and higher limits to 401(k) plans are among the reasons that many refunds have gotten bigger.
• Many early tax filers expect to receive a refund while last-minute filers expect to owe money, surveys show.

What they're saying: IRS Commissioner Danny Werfel said on a call with reporters that two out of three taxpayers get refunds, adding that refunds have been processed quicker this year.

• "In many cases, people have been getting refunds in just over a week," Werfel said. "That's important because for many people, these are the biggest checks they see all year."

Between the lines: Monday was the tax filing deadline for most of the country but taxpayers living Maine or Massachusetts have until Wednesday to file.

• Taxpayers in federally declared disaster areas also may have additional time to file.

Where's My Refund: How to use IRS tool

Refund status updates typically appear 24 hours after e-filing a current year return on the Where's My Refund tool, the IRS said.

• For paper returns, plan to wait about four weeks for an update.
• The IRS said filing electronically and choosing direct deposit is the fastest way to get a refund.

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