30 Million Tax Refunds Issued: Here’s How Much Americans Got Back

March 8, 2022 Topic: 2022 Tax Season Region: United States Blog Brand: Politics Tags: TaxesTax ReturnsIRS

30 Million Tax Refunds Issued: Here’s How Much Americans Got Back

Despite the ongoing challenges, the IRS has reported that it has already issued nearly 30 million tax refunds worth roughly $103 billion.

 

In order to address a massive backlog of millions of unprocessed tax returns and correspondence, the Internal Revenue Service (IRS) has already tapped into multiple “surge teams” in hopes of bringing the inventory down to more manageable levels.

In addition, the beleaguered agency recently confirmed that it has ambitious plans to hire 10,000 new full-time workers to play a direct role in cutting down the backlog.

 

This comes after National Taxpayer Advocate Erin Collins stated that “the coronavirus pandemic has created enormous challenges for taxpayers, tax professionals, and the IRS,” and that the remaining unprocessed returns are from the “most challenging year taxpayers and tax professionals have ever experienced.”

But despite the ongoing challenges, the IRS has reported that it has already issued nearly 30 million tax refunds worth roughly $103 billion. That comes out to an average of $3,473, which is about $450 more than what taxpayers were receiving at the same time last year. The average refund, though, could potentially head lower as more returns are processed. The tax filing deadline is April 18.

Taxpayers Expecting Smaller Refunds

The initial reports of higher refund amounts run counter to a recent survey conducted by Bankrate, which found that 29 percent of respondents admitted that they are concerned that this year’s tax refund will be less than years prior.

“One of the reasons that I could see people having smaller refunds is that all unemployment benefits will be fully taxable for 2021. For 2020, the first $10,200 was exempt from federal tax,” Adam Knihtila, CFO at Adam Kae & Associates, told the financial site.

“Another reason for smaller refunds is families that received the Advance Child Tax Credit payments but no longer qualify because their annual income has crossed over the qualification thresholds. Since the default was to opt-in families to receive the payments, this could be a potential pothole that people won’t realize until they file,” the expert continued.

For the past several weeks, the IRS has put out notice that most American taxpayers—if they have error-free returns and file electronically—should be able to receive their tax refunds within twenty-one days of filing.

Tracking Refunds

There are handy ways to track the refunds as well. “Tracking your tax refund has never been easier,” according to GOBankingRates.com. “There are free tools available, such as the IRS ‘Where’s My Refund?’ tool and USPS Informed Delivery, that allow taxpayers to track their tax refund and know exactly when it’s arriving.”

Taxpayers are able to access the “Where’s My Refund?” tool via IRS.gov or the IRS2Go app. One can see an update twenty-four hours after the IRS has received an electronic filing or four weeks after sending a paper return.

For those taxpayers who are expecting a paper check via traditional mail, they can receive alerts on when it is exactly arriving via the USPS Informed Delivery. All one has to do is head over to the USPS Informed Delivery page, select “Sign Up for Free,” and then follow the simple instructions.

Ethen Kim Lieser is a Washington state-based Science and Tech Editor who has held posts at Google, The Korea Herald, Lincoln Journal Star, AsianWeek, and Arirang TV. Follow or contact him on LinkedIn.

Image: Reuters.