Apr 14, 2025 - Business
Louisiana's federal tax refunds are bigger than most
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Louisiana taxpayers get some of the biggest federal tax refunds in the country, per IRS data.
Why it matters: Tax filing season ends Tuesday.
By the numbers: Louisiana's average federal tax refund was $3,600 for tax year 2022, the latest data available.
- It's more than the national average of about $3,300 and the 5th highest state average.
- Florida was the highest at about $3,900 and Maine was the smallest at $2,700.
How it works: That's among filers who were owed a refund on their federal taxes and chose not to apply that refund to their next year's taxes.
- Differences between states are tied to residents' income levels, withholding selections and other variables.
- Pandemic-era job losses, stimulus checks and tax breaks also had an impact in the past few years.
The big picture: Nearly 68% of federal tax filings resulted in a refund in tax year 2022.
- In Louisiana, about 1.97 million tax returns were filed that year and 1.44 million got refunds, totaling about $5.15 billion.
Between the lines: While many people eagerly await their tax refunds as a kind of bonus, it's really just money you temporarily loaned to the government at 0% interest.
- Some personal finance pros encourage folks to set up their paycheck withholdings to get the smallest possible refund.
- Any difference can be saved or invested elsewhere for better potential returns.