On Friday, the Internal Revenue Service released numbers that provide taxpayers an early indication of the start of tax season.
As of February 4, the average tax refund was $2,201, about two weeks after the Internal Revenue Service began accepting tax returns on January 24, the formal start of the filing season. A total of $9.53 billion in federal income tax refunds has been issued, with little more than 4.3 million returns producing federal income tax refunds.
Per California Examiner, individual income tax returns for nearly 13 million persons have been processed, according to IRS estimates. By February 4, almost 16.7 million returns had been acquired, and over 13 million individual income tax filings had been processed.
From the beginning of the filing season to February 4, the Internal Revenue Service received 417,595 electronically filed federal income tax returns for Michigan citizens.
It’s important to keep in mind that the IRS is dealing with a large backlog of 2020 returns that were left unprocessed the prior year and needed to be dealt with to go forward. For example, the IRS states that 4.46 million tax refunds were received by direct deposit. The average wage in the United States is $2,306.
How to check where my tax refund is?
If you want your federal tax refund as soon as possible, follow these steps: file as soon as possible; file online, perhaps through the IRS-backed IRS Free File or a commercial service like TurboTax; and, when filing online, request that your refund be sent to your bank or designated online account via direct deposit. It’s also crucial to submit a tax return that is free of errors.
Following this approach, the IRS claims that most taxpayers will receive their tax refunds within 21 days, even in the midst of the pandemic-related delay.
The tax refund advance is a short-term loan that allows you to obtain what you’re due (or at least a portion of it) as soon as the day you file. The loans are secured by your anticipated tax refund and are typically repaid with (or deducted from) your IRS refund.
If waiting 21 days isn’t an option this year, or if you’re concerned about the IRS missing its deadline (as millions of taxpayers did last year), take a look at the refund-advance loans offered by three of the most popular commercial tax-preparation services: TurboTax, H&R Block, and Jackson Hewitt. All of them are marketed as no-fee, 0% APR (annual percentage rate) loans, as per CBS News.