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See how much the IRS is sending for the average 2024 tax refund
With many Americans still feeling squeezed by inflation, there’s some good news now landing in their bank accounts, with the IRS sending average tax refunds that are bigger than a year ago.
The typical tax refund through February 23 stands at $3,213, or a 4% increase from the average refund at the same time last year, according to the most recent IRS data.
Taxpayers were served up a double whammy last year when millions of households who were struggling with still-high inflation received smaller tax refunds due to the expiration of pandemic benefits. For instance, at this time last year, the typical refund was 11% lower than in 2022, IRS data shows.
The rebound in 2024’s average refund size is due to the IRS’ adjustment of many tax provisions for inflation. The standard deduction and tax brackets were set 7% higher for the 2023 tax year, the period for which taxpayers are now filing their taxes.
Because of that, workers whose pay didn’t keep up with last year’s high inflation are on track to get bigger tax refunds, with some likely to receive up to 10% more in 2024, Jackson Hewitt chief tax information officer Mark Steber told CBS MoneyWatch earlier this year.
“Strong inflation in 2022 led to significant inflation-linked tax code adjustments for tax year 2023, resulting in a more generous standard deduction, a larger maximum amount that filers can claim for the Earned Income Tax Credit (EITC), and even higher income thresholds where tax rates take effect — thereby subjecting more income to lower tax rates, all else equal,” noted Oxford Economics lead U.S. economist Bernard Yaros in a recent research note about this year’s tax refunds.
How Americans use their tax refunds
About two-thirds of U.S. adults believe they’ll receive a tax refund, which typically represents a household’s biggest annual influx of cash, according to a new study from Bankrate. But rather than use their refunds for splurges, many have serious plans for the cash infusion, with about half planning to use their checks to pay down debt or bolster savings, Bankrate found.
Yet even with the higher average tax refund so far this year, taxpayers are still receiving less than they did two years ago, when the expanded child tax credit and other pandemic-era benefits helped boost the average refund. Still, refunds overall are higher than they were at the same time in the tax season from 2018 through 2021, IRS data shows.
Tax refunds also provide an essential lift to the economy, given that many taxpayers rely on their checks to buy cars, renovate their homes or make other purchases.
“Across the various categories of retail sales, we find the clearest impact from refunds to be on general merchandise stores and used-car dealerships,” Yaros added.
To be sure, it’s still early in the tax season, as Americans have until April 15 to file their returns, and the typical tax refund could change in the following weeks.
CBS News
Kamala Harris will speak with “60 Minutes” tomorrow. Here’s what to know for the interview.
Voters will get the chance to hear from Vice President Kamala Harris on Monday as she presents her case for why she should be president in a “60 Minutes” election special.
For decades, “60 Minutes” has featured both Republican and Democratic nominees for presidents, but this year, former President Donald Trump backed out after previously indicating he would be on the show. Correspondent Scott Pelley, who’d been set to interview Trump, will instead travel to Arizona’s Maricopa County, home to more than 60% of Arizona’s voters and a critical battleground in a key swing state.
One thing is certain about the election; with the U.S. deeply involved in both the wars in Ukraine and the Middle East, whoever wins on Nov. 5 will become a wartime president.
What Harris will discuss
Israel’s war started one year ago after Hamas launched a surprise terror attack and correspondent Bill Whitaker will discuss the ongoing war with Harris.
Harris will also discuss the economy, immigration, her record as vice president and the differences between herself and Trump.
Democratic vice presidential candidate Gov. Tim Walz will also appear.
Whitaker joined the Democratic ticket on the campaign trail this week to gain insight into their platform’s priorities and values, and what the candidates believe voters should know.
Why Trump pulled out of the “60 Minutes” interview
Leading up to the candidate hour, Trump, through campaign spokespeople, was the first candidate to accept the “60 Minutes” request to be interviewed for the special, according to CBS News. It had been agreed that both candidates would receive equal time during the broadcast.
Trump last sat down with 60 Minutes in 2020. He walked out during the interview with Lesley Stahl. Trump referenced the incident on Tuesday night at a Milwaukee press conference when asked about his decision not to participate in the Oct. 7 “60 Minutes” election special.
“Well, right now, I went to – they came to me and would like me to do an interview, but first I want to get an apology, because the last time I did an interview with them, if you remember, they challenged me on the computer,” Trump said. “They said the ‘laptop from hell’ was from Russia, and I said it wasn’t from Russia. It was from Hunter, and I never got an apology, so I’m sort of waiting. I’d love to do ’60 Minutes.’ I do everything.”
The Republican nominee for president emphasized that he felt he was owed an apology from “60 Minutes.”
“Let’s see if they do it. I wouldn’t mind doing 60,” Trump continued. “I’ve done ’60 Minutes’ a lot.”
In a statement on Tuesday, Trump campaign communications director Steven Cheung said that Trump’s team had not agreed to an interview.
“Fake News,” Cheung said in a post on X. “60 Minutes begged for an interview, even after they were caught lying about Hunter Biden’s laptop back in 2020. There were initial discussions, but nothing was ever scheduled or locked in. They also insisted on doing live fact checking, which is unprecedented.”
Previous Trump, Harris appearances on 60 Minutes
Trump previously sat down with “60 Minutes'” Mike Wallace in 1985, Pelley in 2015 and Lesley Stahl twice in 2016, first in July of that year and then again in November of 2016. He also spoke with Stahl again in 2018 and 2020.
Harris previously sat down with Whitaker last year. She also was interviewed by Norah O’Donnell, “CBS Evening News” anchor and “60 Minutes” contributing correspondent, in 2020.
How to watch the “60 Minutes” election special
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