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What is the Average Tax Refund?
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I don’t know how you should interpret this but the average tax refund for 2012 dipped to $2,899, compared to $2,985 last year. This includes all refunds issued before March 16th and this preliminary number, since we still have a week until tax day, is typically higher. It’s usually higher because people due refunds tend to file earlier than those who are not expecting one. This drop is a 2.9% drop compared to last year and is based on over 65 million refunds, which is nearly half a million refunds more than last year. If you were due a refund, it may make sense to adjust your tax withholding as you don’t want to give Uncle Sam 25% of your income.
I wanted to dig a little deeper on the question of average income tax refund because nearly three thousand dollars seems really high but it actually isn’t. It took a bit of searching but after some research into the IRS.gov’s 2008 Data Book and their SOI Tax Stats page, I was able to glean a few gems about the average tax refund.
As of April 27th, nearly two weeks after the end of tax season, the average tax refund dipped slightly from two weeks ago to $2,716 as more returns were filed. They’ve now processed 126.3 million returns of a total 133.5 million received with 99.1 million refunds. The number of direct depositors increased to 78 million with a total amount of refunds hitting nearly $228 billion. A stunning figure that’s only 0.3% higher than the amount for last year.
As of April 13th, they have processed over 105.7 million returns out of 109.2 million. Not surprisingly, 69.7 million taxpayers opted for direct deposit and their refund was slightly lower at $2,762. What I’d like to know is why nearly 20 million refund eligible taxpayers didn’t opt for direct deposit, why not get your money sooner? At least they’re increases in totals over last year.
Historical Average Tax Refund
In previous years, the average tax refund has fluctuated, with the average peaking for the 2009 tax year before slipping:
- Average Tax Year 2007 Refund: $2,699
- Average Tax Year 2008 Refund: $2,728
- Average Tax Year 2009 Refund: $3,036
- Average Tax Year 2010 Refund: $3,003
- Average Tax Year 2011 Refund: $2,913
2011 Tax Refund Information
In 2011, there were 145 million tax returns filed, of which 109 million received refunds with the average of $2,913. Interestingly enough, 79 million opted to have their refunds direct deposited and the average refund for those returns was $3,109. Another fact is that 112 million of returns were e-filed and nearly 40 million did the taxes themselves.
2008 Tax Stats
Of the 96,673,000 returns filed in Tax Year 2008 (tax returns filed by April 2009) that were entitled to a refund, the average refund was $2,683. The early birds did have a higher average but not by much, 6.9%. The average return in Tax Year 2007 was $2,371 and it remains to be seen what the average will be for an economically saddened Tax Year 2008. This trend seems to hold true every year, the bigger the refund, the earlier people file.
Incidentally, of the 131.5 million individual tax returns, 73.5% of them were entitled to a refund of some kind. If you’re a stat junkie and glean anything remarkable in those IRS stats, please let us know!
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My mom is a registered nurse and she claimed me (21) & my daughter (4) and she was suppose to give me all the money she received for us. $600 is what she claims to be the money. Does this sound right? By the way I have full blown sickle-cell & and am considered a paraplegic since my accident two years ago.
It sounds very possible, however you don’t provide enough information for a real answer. Your mom is an RN so (i hate making assumptions) the assumption is she is possibly above the income requirement for earned income credit. While she may have received the child tax credit for your daughter, you yourself are not bringing in the dollars as it seems you may assume. Each individual return is different, her refund is based on her earnings, what she paid in with regards to her tax liability, and her deductions which may be others outside of you and your daughter. I won’t judge because you did not say whether or not your worked or if you lived under her roof, however if you trusted her enough to claim you, then you should possibly trust that she is being honest in what she agreed to give you.
It is your mom’s tax refund, not yours. Just because she was able to claim you as a dependent, does not mean it’s your money! Be happy she gave you what she did! Perhaps having a child at the age of 17 didn’t help your situation.
Please ignore the ignorant person that commented before me. If you worked in the last year, you file separate from your mother, even if she claims you. If you did not work, then you won’t be receiving a return because you didn’t pay taxes from your wages. Filing is fairly simple and you can have your federal stuff done for free a lot of places. Good luck!
Perhaps it’s none of your business what she does with her life. What gives you the right to be able to say anything. Some people who have children at a young age, plan it, and are good parents. Most don’t. Now a days it’s a trend. And I completely agree with the fact that she should’ve recieved part of that money. When you have children you do what you have to take care of you and them. If my family claimed me, you better believe I would be getting my share to take care of my babies. Especially if I worked and could’ve filed my own, and was nice enough to let them claim me so that they could make more. Find something better to do with your life other than to do research and decide to get into other peoples lives who have absolutely nothing to do with you. And people having children at a young age doesn’t affect your life at all. Especially since she’s a stranger, and doesn’t even know you. Or maybe she does and you just posted as anonymous, because you’re so pathetic that you couldn’t put your name up there. For all we know your a 40 year old who has your first baby, and you can’t stand the fact that she’s young and a better parent than you are. Stop running your mouth online, it’s so rediculous…
I personally dont think that an open forum needs a “Reply Police Dept.” When someone makes a reply. And for those of us who have adult children, we know what adult “dependants” feels like. But along the lines of having children, I say make more babies! Why not, there never a mistake, and a lot of lives are like museums with out them. Im a fifty year old, and my lunch buddy at work has just gotten a grandaughter from her adult daughter who moved back in with her when dad unexpectedly died, and among all the great pain in the u know whats, she is having the greatest time of her older years with her grandchild! She did let new mommy claim her on her meager income tax. Just me, no charge!
First of all, we get tax refunds based on the amount of taxes we owe compared to what we’ve already paid in. When we claim 1 or 2 on our W2, then we are paying less to the government than claiming 0, so the first thing you should ask is, what did your Mom claim. If she claimed zero, she paid all taxes possible, and will be getting a higher refund. If she need the money to support you guys, she should have claimed 2-3 in order to have the cash available to support you. This ultimately determines the amount she will get back.
Secondly, assuming your mother is raising you and your child since she is claiming both of you, she is the one that is getting the refund money because she is the one that is working and earning the money to pay for your expenses. I can only assume you have no income, or else you would be filing yourself and claiming your child, in which case you would be getting much more than if you did nothing and let your mom give you what little she gets back from the government compared to the amount she shells out all year to pay for the cost of living for the both of you.
Woah, spell check mr. rediculous…
This is in response to the person who claims people having children at a young age doesn’t affect the lives of others. Most teenagers that have children end up on welfare and other social services. That does have an affect on the lives of
productive citizens because we have to pay for it.
People should have children only when they are able to provide for them so that the rest of us don’t end up subsidizing them. I don’t know about you, but I have a hard enough time just trying to keep what I have in these tough economic times. Why should I have to pay for someone elses irresponsible behavior. And another thing, why are Americans subsidizing the children of illegal aliens?
If there were 109 million refunds in 2011 and the average refund was around $3000, that means that 109 million people collectively loaned the US Government around $327 billion for the year. How nice of them. Nice work if you can get it. My average refund if around $10 because I choose to put the other $3000 in and interest-bearing account for the year, rather than loan it to the government. And, still there are those among us who maintain that we are not a dumb and getting dumber nation!!
Your stats are diff from those on the IRS table you link to, which says the avg refund thru April 27 was $2,716. Am I missing something?
Yikes you’re right, I read the wrong row… I read the direct deposit refunds, not the total. Thanks Don!