Refunds are shaping up to be more substantial for taxpayers this Tax Day.
Recent IRS data reveals that the average income tax refund for this season stands at $3,011, marking an increase of $123 from the previous year. With two out of three taxpayers anticipating a refund, the agency is highlighting its customer service enhancements, made possible by the infusion of funding from the Democrats’ Inflation Reduction Act. These improvements include expedited refund processing, with some individuals receiving refunds in just over a week.
As of early April, the IRS has disbursed over $200 billion in refunds, with 101 million people having filed returns thus far in the tax season.
Notably, President Joe Biden and First Lady Jill Biden filed their tax returns, revealing that while President Biden owed the IRS $334 and the state of Delaware $1,480, Jill Biden qualified for a $433 refund from Virginia. The Bidens reported an income of $619,976 and paid a federal income tax rate of 23.7%.
The IRS’s efforts to modernize and streamline operations, such as reducing phone wait times and enhancing the “Where’s My Refund” tool, aim to improve the agency’s reputation and efficiency.
This promotional push is also a preemptive measure against potential spending cuts from congressional Republicans, underscoring the urgency for both taxpayers and the agency.
For most individuals, April 15 serves as the deadline for filing tax returns or requesting an extension.
The IRS reports significant improvements in customer service, including reduced call wait times and enhancements to the “Where’s My Refund” tool, resulting in time savings for taxpayers.
The agency’s focus is on providing better service and increasing oversight on complex tax filings, with recent initiatives targeting high-wealth earners and the introduction of the Direct File program for simple tax returns.
Despite initial funding allocations, House Republicans have curtailed IRS funding, diverting billions to other programs. This reduction in funding raises concerns among government watchdogs about decreased revenue collection and its impact on the deficit over the coming years.
