2024 Tax Refunds: Potential Increases and Key Factors to Consider

Taxpayers eagerly anticipate the upcoming tax season, curious about the potential size of their tax refunds. This article delves into the latest information regarding 2024 tax refunds, analyzing factors that may influence their size and providing insights into what to expect.

Inflation’s Impact on Tax Refunds

Ironically, inflation could provide a financial boon for taxpayers in 2024. The IRS has adjusted its provisions for inflation, resulting in a more generous standard deduction and higher tax brackets. This means that individuals whose incomes have not kept pace with inflation may receive larger refunds.

Key Factors Influencing Refund Size

Several factors contribute to the size of tax refunds, including:

  • Income: Higher incomes generally lead to lower refunds due to increased tax liability.

  • Deductions and Credits: Taxpayers who claim eligible deductions and credits, such as the standard deduction, mortgage interest deduction, and child tax credit, can reduce their taxable income and increase their refunds.

  • Withholdings: The amount withheld from paychecks for taxes affects the size of refunds. Those who have too much withheld may receive larger refunds, while those who have too little withheld may owe taxes.

2024 Refund Projections

Tax experts predict that many taxpayers could see an increase in their 2024 refunds compared to 2023. Some may receive up to 10% more, particularly those whose incomes have not kept pace with inflation.

Potential Groups with Larger Refunds

  • Middle- and Lower-Income Workers: Individuals in these income brackets may benefit from the increased standard deduction and tax brackets.

  • Homeowners with Energy Tax Credits: Taxpayers who utilized expanded home energy tax credits may receive larger refunds.

  • Families with Children: The Earned Income Tax Credit has been expanded, potentially increasing refunds for low-income families with children.

Potential Groups with Smaller Refunds

  • Social Security Beneficiaries: Retirees may face higher taxes due to the lack of inflation adjustment for the threshold at which Social Security benefits become taxable.

  • Individuals with Side Hustles: Taxpayers who earned additional income from side gigs may owe taxes if they did not pay quarterly self-employment taxes.

Timeline for Receiving Refunds

The IRS began accepting tax returns on January 29, 2024. Most taxpayers can expect to receive their refunds within 21 days of filing. However, the IRS cautions that some returns may take longer to process.

Taxpayers can anticipate potential increases in their 2024 tax refunds due to inflation adjustments and other factors. By understanding the key factors that influence refund size and staying informed about the latest tax laws, individuals can maximize their refunds and plan their finances accordingly.

IRS Tax Refund Update – Delays and Smaller Refunds


Will tax refunds be bigger in 2024?

Tax refunds for some taxpayers may be bigger in 2024 thanks to the inflation adjustments the Internal Revenue Service made to tax brackets implemented in 2023, along with increased standard deductions.

Are tax refunds bigger this year?

The average tax refund amount is higher this year than last filing season. How does yours compare? The latest IRS data show that the average federal tax refund is approximately $3,182. That’s more than $140 (5.1%) higher than it was at this time last year.

How much is a tax refund in 2021?

How to Track Your Tax Refund Status Through March 25, the average federal tax refund was $3,337, up 12.8% from the same period last year, according to the IRS. In 2021, the average refund was $2,959 by the same date.

How long does it take to get a 2021 tax refund?

A number of these myths circulate on social media every tax season. The IRS continues to process 2021 tax returns and deliver refunds, with nine out of 10 refunds issued in less than 21 days. As of the week ending April 1, the IRS has sent out more than 63 million refunds worth over $204 billion. The average refund is $3,226.

Could a smaller tax refund be in 2022?

Yet that actually means a decline of $1,000 in tax credits compared with the prior tax year, when they would have claimed $4,000 for their two children. The result could be a smaller tax refund in 2022, tax experts say.

Do I need to wait for MY 2021 tax return?

Myth 2: Taxpayers need to wait for their 2020 return to be processed before filing their 2021 return, or that all refunds are delayed due to the number of 2020 returns the IRS still needs to process. The reality is that taxpayers generally will not need to wait for their 2020 return to be fully processed to file their 2021 tax returns.

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