Taxpayers across the nation are experiencing a mixed bag this tax season as federal tax refunds show a notable increase in average amount, yet the number of refunds issued has seen a decline compared to the previous year. As of March 1, the Internal Revenue Service (IRS) reported a significant rise in the average tax refund, with figures standing at $3,182, marking a 5.1% increase from the previous year’s $3,028 during a similar timeframe.

However, the surge in average refund amount is accompanied by a concerning trend: a decrease in the number of tax refunds issued compared to the previous year. The IRS data reveals that the number of tax refunds issued through March 1 has plummeted by 13.7%, with 36.28 million refunds issued this year as opposed to the previous year’s figures. Additionally, the total amount refunded through March 1 stands at nearly $115.5 billion, reflecting a significant decline of 9.3% from the previous year.

Despite the decline in the number of refunds issued, the IRS has reassured taxpayers that the filing season has been smooth overall, with no major issues reported regarding refund processing. With the tax season underway since January 29, the IRS has received over 54 million tax returns in the first five weeks, marking a slight decrease of 1.7% from the previous year.

It’s noteworthy that last year’s tax season commenced about a week earlier on January 23, potentially contributing to the slight decrease in the number of returns received this year. Furthermore, this year’s data includes an extra day in February due to leap year, which could have also impacted the statistics.

As taxpayers await their refunds, the increase in average refund amount offers a silver lining amid concerns over the decline in the number of refunds issued. However, the overarching trend underscores the importance for taxpayers to stay informed and proactive during tax season, seeking assistance if needed to navigate any potential challenges in the process.