2023 tax season coming to an end in just a few weeks, the Internal Revenue Service is reminding taxpayers to brace for a smaller refund this year.
The IRS said that it has issued about 53 million refunds as of March 17, worth a collective $158.1 billion. The average refund check so far this year is worth $2,933 – about 11% lower compared to the $3,305 average recorded last year.
The decrease in refund size can be concerning to millions of Americans who depend on the influx of money from Uncle Sam to make major purchases, save for retirement or pay off debt. On top of that, millions of taxpayers are still struggling with the worst inflation bout in a generation that has sent the cost of staples like food, rent and gasoline soaring higher.
A recent survey from Bankrate found that about 75% of adults who expect to receive a tax refund this year believe the money is important to their overall financial situation. About 43% said the refund is "very important," compared to 32% who described it as "somewhat important."