Tax refunds have finally increased after two weeks of significant declines compared to the same period last year, according to the latest data from the Internal Revenue Service (IRS).
Tax refunds are up 2% compared to this time last year, but fewer taxpayers are filing returns.
The average tax refund as of Feb. 16 was $3,207, up from $3,140 a year earlier, the IRS reported. That's based on the roughly 21 million refunds the agency has issued to date and the roughly 28 million refunds paid at this time last year, a drop of nearly 25%.
Based on weekly filing statistics, the number of returns processed is 6% lower than this time last year, yet the average refund amount is 2% higher.
The average amount is likely to change as more returns are processed, especially those with the Earned Income Tax Credit (EITC), which is processed this week. The IRS estimates that most EITC filers will receive their refund by February 27th.
Refunds, including the Earned Income Tax Credit (EITC) and Supplemental Child Tax Credit (ACTC), are delayed by law until mid-February.
Read more about income tax credit And that child tax credit.
If you're not sure when you'll receive your tax refund, check out our tax refund calendar.
The number of returns received and processed may be even lower due to the number of taxpayers affected by storms and other natural disasters.
The IRS this week added San Diego taxpayers to the list of taxpayers allowed to file extensions due to the storm. Taxpayers in disaster relief areas declared by the Federal Emergency Management Agency are subject to the extension deadline.
The IRS has previously extended filing deadlines to June 17 for taxpayers in San Diego, Connecticut, Rhode Island, Maine, West Virginia and Michigan affected by storms, tornadoes and flooding.
read more: 7 ways to file your taxes for free
Rhonda Lee is a senior personal finance reporter at Yahoo Finance and an attorney with experience in law, insurance, education, and government. Follow her on X @writesronda
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