If you haven’t received your tax refund yet, you’re probably looking forward to it. You may also be wondering how your repayment rate compares to the US average.
You are in the right place, so read on.
What is the average return?
‘s average yield as of April 21, 2023 was $2,753, down 8.6% from the prior-year average of $3,012. That number rose late last year: According to the National Taxpayer Advocate’s annual report to Congress, about two-thirds of taxpayers were eligible for a refund, averaging nearly $3,200 in 2022.
Average returns have fallen as multiple tax credits that were temporarily extended to alleviate COVID-19 have expired or returned to regular amounts for fiscal year 2022. But even a lower-than-normal return can make a world of difference to your finances if you make the most of it.
READ: Why Your Tax Refund May Be Lower in 2023
When Will I Receive Your Tax Refund?
IRS issues most refunds in less than 21 days if you filed your taxes electronically and enrolled in direct deposit. That means most people should receive their refunds by mid-May, even if they applied before the April 18 deadline.
If you filed your paper tax return, it can take six to eight weeks to receive your refund after it is received by the IRS, Lisa Greene-Lewis, TurboTax Chartered Accountant and Tax Expert.Also, requesting a paper check instead of a direct deposit will slow down the process.
You can check the status of your refund with the IRS. Where’s my refund? Tool. The tool can be used from 24 hours after submission of the application in electronic form or four weeks after submission of the declaration in paper form. Enter your social security number and the dollar amount of your refund, and you’ll know if the IRS received, approved, or mailed your refund.The information is updated daily.
“The tool will show you the effective date of your refund once the IRS processes your tax return and approves your refund,” says Melanie Lauridsen, Tax & Ethics for the American Institute of Certified Public Accountants, he says.
Read: When to Worry (and When Not to Worry) When Your Tax Return Is Late.
How can I get the most out of my refund?
Extra Cash can be a great opportunity to improve your financial situation without affecting your daily finances.
“With the possibility of a lower tax return this year than last year, I encourage you to take the time to think about how this money can best contribute to your financial goals.” – says Thomas Racca, head of the Navy Federal Credit Union personal finance teams. “Be strategic about how you use that money.”
For example, paying off high-interest credit card debt can save you extra money in interest, especially now that interest rates are rising.
“Credit card or loan payments can strain your budget. So think about paying off or paying off the debt that you need to reduce,” says Racca. “Since this money is usually not included in the budget, it is easy to get into debt without losing it.