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Early IRS Filings Show Average Refund Down by $600 from Last Year

By:
Ruth Singleton
Published Date:
Feb 14, 2022
iStock-161760094 1040 Form

According to IRS statistics from the first week of this year's filing season, the average refund is $2,201, down by roughly $600 from the average last year, Accounting Today reported.

For the week ending Feb. 4, the IRS received about 16.7 million tax returns and processed about 13 million. That rate is slightly lower than the rate for the first week last year. It represents just a small fraction of anticipating filings for the tax season, which ends on April 18. Only about a quarter of those who filed their tax returns have received their refunds so far: 4.3 million.

There are several reasons why the refunds are lower this year. One big reason is that the IRS sent out half of the up to $3,600 child tax credit in advance, meaning that parents will receive only the remainder in their refunds. Another reason is that millions  of Americans received unemployment benefits last year, which are taxable.

The IRS has warned of a challenging  tax season that could result in delays for some households in receiving their refunds. IRS Commissioner Chuck Rettig has said that taxpayers need to take special care this year due to several critical tax law changes that took place in 2021, along with ongoing challenges related to the pandemic.


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