Tax Refunds Down, Earned Income Tax Credit Remains Vital
Average IRS Tax Refunds Reach $3,207, Bringing Financial Relief to Many This Week (PHOTO: Canara HSBC Life Insurance)
IRS Offers Online Tool for Tracking Tax Refund Status
The IRS processed 34.5 million individual income tax returns through Feb. 16 down 6% from the year ago data through Feb. 17 2023. The IRS received 34.74 million individual income tax returns through Feb. 16 down 5.7% from a year ago. The IRS has issued nearly $67 billion in refunds to tax filers through Feb. 16 which is down 23.2% from the same time last year. The earned income tax credit helps drive up tax refunds for many lower income and middle income working families and remains a key part of covering essentials such as heating bills groceries and rent. While the Feb. 27 date is a target the IRS noted that some taxpayers may see their refunds a few days earlier.
The IRS advises filer to check the Where s My Refund tool at IRS.gov for an individuals personalized refund date. The tool was expected to show an updated status by Feb. 17 for most early filers who claimed the earned income tax credit or the additional child tax credit. You can check your federal income refund status 24 hours after you e file a current year return. You need your Social Security or individual taxpayer ID number your filing status and the exact refund amount on your return.
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Earned Income Tax Credit: Impact on Tax Refunds and Michigan Families
The IRS noted that banks might need more time to accept a direct deposit or issue a debit card. Many institutions do not process payments on weekends or holiday. The dollar amount that individuals receive when claiming the federal earned income tax credit varies dramatically based on family size income and filing status. You need to have earned income in 2023. The maximum earned income tax credit is $7,430 in 2023 for an eligible family with three or more qualifying children.
Last year about 23 million workers and their families received roughly $57 billion in the federal earned income tax credit as of December 2023 according to IRS data. The average amount received nationwide was about $2,541. In Michigan about 664,000 lower to middle income workers and families received $1.7 billion for the federal earned income tax credit after filing a 2022 federal tax return. The average EITC amount received in Michigan was $2,587 last year. This year Michigan families have even more reason if they qualify to file for both the federal and state income tax returns to claim the earned income tax credit.
READ ALSO: Understanding The Child Tax Credit: Eligibility And Benefits Explained
