The entire amount of cash flowing into American wallets from federal tax refunds has plummeted in 2023, in accordance with the most recent figures from the IRS.

Thus far, federal tax refunds in 2023 are about $183 billion, down 10.4% from the $204 billion refunded on the similar time final yr.

The quantity of the typical reimbursement can also be shrinking. It sits at $2,910, down 9.8% from the typical refund of $3,226 at this level in 2022.

In reality, none of this could come as a shock. The IRS itself warned earlier this yr that refunds have been prone to be smaller this tax season.

Most of the elements resulting in shrinking refunds are associated to the nation’s emergence from the COVID-19 pandemic, as we defined in our 5 Causes Your Tax Return May Be Smaller This Yr story.

In keeping with the IRS, practically 63 million Individuals have acquired refunds up to now in 2023, down barely from the identical interval a yr in the past.

For its newest replace, the company in contrast information from two factors in time – April 1, 2022, and March 31 of this yr – and located that the variety of refunds fell by 0.7% year-on-year, from about 63.4 million at this level in 2022 to 62.9 million this yr.

Whatever the dimension of your tax refund, there’s a lot you are able to do to enhance your cash life. For recommendations on what you need to and should not do along with your refund, see: