Tax Refunds Are Rolling In, But IRS Processing Slows This Season
Hey everyone, let’s talk about this year’s tax season—because, as always, it’s bringing its own set of surprises! Tax refunds are definitely flowing, but the IRS isn’t processing as many returns as usual. That’s right—so far, fewer people have filed early, and the IRS has processed 7.6% fewer returns compared to last year at this time.
Now, why is this happening? Well, there are a few reasons. First, a lot of people might be holding off because of confusing tax advice on social media. Then, there’s the flood of 1099-K forms hitting gig workers, making some take extra time to sort things out. Add in delayed deadlines in states affected by disasters, plus all the political buzz around possible tax changes, and it makes sense why some taxpayers are playing the waiting game.
That said, those who have filed are seeing good news. The average tax refund so far is $2,065—an 18.6% increase from last year. And if you’re wondering when you’ll get yours, it depends. If you e-file and choose direct deposit, you could see your refund in as little as 11 days. But if you’re claiming the Earned Income Tax Credit or Additional Child Tax Credit, expect to wait until at least early March.
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Now, let’s talk about some of the rumors floating around. Some people seem to think that recent political moves—like discussions about cutting the IRS or changing tax laws—mean they can skip filing this year. Not true! Even with all the talk about tax reforms and the IRS possibly downsizing, none of it affects your 2024 tax return. So, if you owe taxes, you still have to file, and if you’re due a refund, why wait?
Another thing causing delays? The increased reporting of income from online sales, gig work, and side hustles. A lot of people who never had to deal with a 1099-K before are now getting them because of lower reporting thresholds. If you made more than $5,000 through payment apps or online sales, you’re getting a tax form—whether you were expecting it or not! Some folks are taking extra time to figure out how to handle that on their returns.
And let’s not forget about the IRS itself. There’s been a hiring freeze, and with ongoing discussions about cutting government spending, some people are concerned about the agency’s future. But for now, the IRS is still very much in business, and tax deadlines remain in place.
For those affected by disasters, there’s some relief: taxpayers in parts of California, Alabama, Florida, Georgia, and a few other states have extended deadlines to May 1 or even October 15, depending on their situation. But for most people, the deadline to file remains April 15.
So, what’s the bottom line? If you’re getting a refund, don’t let unnecessary delays hold you up. And if you owe, it’s better to file now and make a plan rather than risk penalties. Either way, the IRS is expecting a surge in filings as we get closer to the deadline—so if you want to avoid the rush, now might be the perfect time to get it done.
Got any tax season frustrations or surprises this year? Let’s talk about it!
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