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Tax refunds from the IRS in 2022 are bigger than before, and only getting bigger

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.

check from the IRS with cash representing tax refunds from tax returns

The IRS is making its way through quite a backlog of tax returns, and continue to update the numbers.

This month, the average is around $3,309 per refund, a bit higher than one month prior.

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.

IRS destroyed 30 million documents: Will it impact tax refunds?

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.

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