According to the IRS, tax refunds are, on average, around $3,025 for the year 2022 as of last month. That number has since increased.
The IRS is making its way through quite a backlog of tax returns, and continue to update the numbers.
In 2021, the average refund was about $2,827.
Higher tax refunds aren’t a good thing
While many people enjoy getting that large refund, it isn’t a great thing.
This is because that money was yours all along, and you overpaid the IRS money throughout the year you could have kept for yourself.
You’re simply being paid back for overpaying on your taxes.
If you received a large refund, it may be worth looking into the details like what you claim and your filing status.
Some people may see even larger refunds when they finally get them
The IRS is facing a major backlog, especially with paper tax returns and tax refunds.
This means some of these refunds will have added interest in them.
If the IRS takes 45 days or more to process your tax return, you’re owed interest for each day that passes.
July 1 the interest rate will jump to 5%.
Unfortunately, any interest you’re paid on your refund will be considered taxable income.