The average tax refund is $2,254 in Vermont, up to $3,125 in Connecticut. For many families, this is the largest check they will receive all year. While it is impossible to determine the average refund until several weeks before Tax Day, you can start planning for your return. The earlier you file, the higher the chances are that you’ll get a large refund.
Tax refunds range from $2,254 (in Vermont) up to $3,125 (in Connecticut)
Refund amounts can vary widely depending on the state you live in, but residents in high-income states usually receive more money in their refund checks. The higher your income, the higher the amount of money withheld from your taxes, and the larger your refund check will be.
Refund amounts can be substantial, so it’s important to be prepared. In some states, tax refunds can be as much as $1,050. For example, residents of Vermont may receive as much as $2,254 during tax season. Other states offer even higher refunds.
Regardless of the state, child tax credits can be a good way to boost your tax refund. Federal and state governments have established child tax credits to help low-income families with children. The amount of these credits is determined by a person’s income and the number of children in the household. The federal child tax credit alone is estimated to lift nearly two million children out of poverty each year.
They are related to income
The average tax refund you will receive depends on a variety of factors. For one, you must pay some portion of your income to the federal government each year. Usually, your employer will take care of this for you by collecting your taxes from your paychecks and paying the IRS on your behalf.
Generally, tax refunds increase with income. The average tax refund for people in the lower and middle classes is around $2,400. As people age, tax refund amounts decline. They peaked in the age group of 35 to 44 and then start to drop off again. The average tax refund is higher for those in the 45-54 age group.
They are processed manually
According to the Internal Revenue Service, 29 million tax returns are currently being held for manual processing. This delay in processing is partly due to sweeping changes in the tax code, as well as outdated IT systems. The average time to process a tax return is three weeks. As a result, taxpayers are becoming increasingly frustrated on social media.
According to the National Taxpayer Advocate, over 70 percent of individual tax returns are behind schedule. This means that many taxpayers have to wait longer than expected to receive their refunds. Even though the IRS uses an Error Resolution System (ERS) to review returned returns for errors, they still have to be manually reviewed by a human to make sure they were filed accurately and if they should have received a refund.
They are processed within 21 days
According to the IRS, the average time to process tax returns is 21 days. Some factors can slow down processing, though, including the type of filing method and whether payments are mailed. In addition, there is the risk of identity theft, which can cause delays, as well. For example, last year the IRS sent 7.4 million “math error” notices to taxpayers, which delayed many refunds. While many people are still waiting for resolution, others may see a refund in as few as six months.
The IRS recently reported that nearly half of all individual tax returns processed through March 4 received a refund. This was an increase of nearly eight percent compared to last year. The average refund is $3,352, which is $537 higher than last year’s refund of $2,815. However, the amount of refund will likely change in the coming weeks, as the IRS is still dealing with the backlog of returns from last year.