One month into tax season, the Internal Revenue Service (IRS) is reporting that nearly 40 million tax refunds worth $125 billion have been issued. The average refund per taxpayer is $3,120.
Those statistics are roughly equal to 2014 numbers. At this time last year, IRS had received 49,558,000 returns, just a little under the 49,651,000 returns received to date in 2015. However, by this time last year, IRS had processed 48,335,000 returns compared to 48,295,000 so far this year. That dip – just .1% – could be attributable to extra screens in response to concerns over identity theft.
The number of refunds issued are down a little to date, too, compared to last year. Last year, the IRS had issued 40,389,000 refunds at this point in the tax season. So far this season, IRS has issued just 39,964,000 refunds, a drop of 1.1%.
There is, however, good news for those receiving a refund: that average refund of $3,120 is $4 more than last year’s average at the same time of $3,116. That translates to an extra flat white from Starbucks for coffee drinking taxpayers across the country.
By the numbers, 4 of 5 tax returns have resulted in a refund so far in 2015. Don’t expect that trend to continue. Statistically, early filers tend to be those expecting a refund. That makes sense, of course, since it’s to your advantage to file early if you want your refund: the earlier you file, the more likely it is that you’ll receive your money quickly.
However, if you’re expecting to break even (or if you’re going to owe taxes) there’s no real advantage to filing early. You have until April 15, 2015, to get your return in. It’s worth noting that you don’t have to pay early just because you file early. If you’re generally an early bird – except when it comes to writing that check – you can split up filing and paying. In other words, you could file tomorrow and make payment by the April 15, 2015, – you’ll still be okay.
About two-thirds of taxpayers will be sorting out filing and payment options over the next two months. The nature of tax season tends to be the early rush, then steady filing followed by the big push at the end (I’m one of those at the end). In total, the IRS expects to receive and process more than 150 million individual income tax returns.
