March 9, 2009
Taxpayers apparently aren't waiting until the April 15 deadline to file their 2008 income tax returns. Americans are filing their returns earlier and receiving larger refunds so far this year, according to early filing season statistics released by the Internal Revenue Service.
As of Feb. 27, 2009, the IRS had received 56 million individual tax returns, a slight increase over the previous year. And, the average individual refund was $2,869, a 9 percent increase or $232 more than the same time last year.
The IRS notes that possible reasons for the larger refunds may include taxpayers benefiting from the recovery rebate credit and other tax breaks such as the first-time homebuyer credit and the additional standard deduction for real estate taxes. The average refund amount generally will decrease slightly as the filing season progresses.
More taxpayers choose to receive their refunds through direct deposit each year. As of Feb. 27, more than 84 percent of all refunds were issued through direct deposit, up from 81 percent for the same period last year.
While the IRS has issued almost 3 percent more refunds this year compared to the same time last year, the number of taxpayers who choose to receive their refunds through direct deposit is up almost 7 percent compared to the same time last year. On Feb. 27, the average direct deposit refund totaled $3,063.
The IRS cautioned that year-to-year analysis of total returns filed will be an anomaly this year because last year's results include those returns filed for the economic stimulus payment. As the year progresses, the IRS expects to receive and process more individual income tax returns during 2009 than in 2007 but fewer than in 2008.
Meanwhile, some taxpayers are taking advantage of the IRS' free online tax preparation and filing service. The service is provided through a partnership between the IRS and private tax-preparation companies and is designed to encourage more people to "e-file."
This year the program is available to all taxpayers with adjusted gross income of $56,000 or less. Each of the programs is slightly different when it comes to who can use it. Some, for example, can be used only by taxpayers who reside in certain states. Some have age restrictions, but all provide free tax preparation and e-filing for one federal tax return.
