The IRS has officially started accepting tax returns for the 2024 tax season, and this year it is pledging to provide better service to taxpayers. Many individuals are eager to know if they will receive a larger tax refund and how long it will take for the IRS to process and send their money. According to a study conducted by Intuit Credit Karma, more than half of Americans plan to file their taxes early this year to receive their refunds as quickly as possible.

Last year, the average tax refund check was nearly $3,200, often representing the largest sum of money received by families throughout the year. The timing of tax refunds is a major concern for taxpayers, particularly after experiencing delays caused by IRS backlogs during the pandemic. However, there is good news for the 2024 tax season, as the IRS has received billions in new funding through the Inflation Reduction Act. This funding has allowed the agency to hire more customer service representatives and improve their digital services, including the popular "Where's My Refund?" tool.

Mark Steber, the Chief Tax Information Officer at Jackson Hewitt, advises taxpayers to file their returns as early as possible. In addition to receiving their refunds sooner, early filers can also protect their personal information from fraudsters who attempt to file fraudulent returns using stolen Social Security and work data. By filing early, taxpayers can prevent scammers from claiming their refund before they have the chance to file their own return.

It is important to note that the IRS began accepting tax returns on January 29th, and the deadline to file federal tax returns is April 15th. Taxpayers in Maine and Massachusetts have an extended deadline of April 17th due to state holidays. Additionally, individuals living in federally declared disaster areas may be eligible for additional time to file. For those who require more time, it is possible to request a filing extension, granting them until mid-October to submit their tax returns.

Typically, the IRS aims to process and issue refunds within 21 days for electronic filers. This means that individuals who filed their taxes on January 29th, the earliest possible date, could expect to receive their refund by February 19th. However, it is important to remember that the 21-day timeframe is a guideline and not a guarantee. Some returns may require further review, resulting in refunds being issued beyond the initial 21-day period. It is also worth noting that paper returns generally take longer for the IRS to process compared to electronic filings.

To track the status of their refund, taxpayers are encouraged to visit the "Where's My Refund?" tool on the IRS website or use the IRS2Go app. The IRS announced that they have updated the tool for this season, providing more detailed information about a taxpayer's refund status. This includes identifying if the IRS requires additional information and providing other relevant details.

In addition to refund expectations, there is also a proposed expansion of the Child Tax Credit (CTC) currently under consideration. If approved, some changes may be applied retroactively to the 2023 tax year. However, tax experts advise against delaying filing in the hopes of a more generous CTC. It is believed that if the expanded credit becomes law and is retroactive, the IRS will send an additional payment to eligible individuals to make up for any difference. The impact on tax refunds is estimated to be only a few hundred dollars, which experts believe is not worth delaying the receipt of a potentially larger tax refund.

The IRS has adjusted its tax brackets for both 2023 and 2024 to account for inflation. In 2023, the tax brackets were adjusted upward by approximately 7%. This year, the tax brackets have been adjusted approximately 5.4% higher compared to 2023. Taxpayers whose income did not keep pace with inflation may see bigger refunds this year, particularly if their wages increased by a smaller percentage than the IRS adjustment to tax brackets.

According to Credit Karma, approximately three in four Americans expect to receive a tax refund this year, while one in four anticipate an increased paycheck from the IRS. As the 2024 tax season gets underway, taxpayers are advised to file early, take advantage of online resources to track their refund, and remain informed about any potential legislative changes that may impact their tax returns.