With tax season underway, the IRS has already issued over 43 million refunds totaling nearly $135.3 billion, with the average refund standing at $3,145 as of March 8, up from $2,972 compared to the same period in 2023. However, this average might fluctuate as the IRS anticipates receiving millions more returns. Despite expectations for a refund prompting earlier filings, many taxpayers delay filing for various reasons, including waiting for necessary tax forms like Schedule K-1 for pass-through business income, leading to an increase in extension filings. Although the average refund for 2023 was slightly lower than in 2022, some 40% of taxpayers are relying on a refund this season, attributed partly to inflationary pressures, which, though lower than previous years, remain above the Federal Reserve’s target.

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