IRS Warns Tax Refunds Will Be Much Lower This Year

Inflation-hit Americans who filed their taxes early have received, on average, smaller tax refunds this year.

A 1040 form used by U.S. taxpayers to file an annual income tax return, in a file photo. Joe Raedle/Getty Images

Inflation-hit Americans who filed their taxes early have received, on average, smaller tax refunds this year, according to data published by the IRS.

The average tax refund issued by Feb. 2 averaged $1,395, a significant decline of $568—or a drop of 29 percent—from the same time last year, the data show. So far, 2.6 million tax refunds have been issued, worth about $3.65 billion.