Tax refunds are smaller this year — but by how much? Here’s what to know

Moira Ritter
Keith Srakocic/AP

For months, experts and the Internal Revenue Service have warned taxpayers that their tax refund might be smaller this year.

Now, early 2022 tax season data is proving this, and we know just how much smaller refunds are.

Compared to last year, the average refund amount is $1,963 this year, about 11% smaller than last year’s average refund amount of $2,201, the IRS data shows. That’s based on nearly 8 million refunds that have already been determined and nearly 17 million tax returns that have been processed by the IRS.

The latest update compares data from Feb. 4, 2022, and Feb. 3, 2023, the IRS said.

Here’s why your refund could be smaller this year and other tax season information to know.

Stimulus payments and charitable contributions

The two biggest causes of smaller tax refunds are changes to stimulus payments and charitable contribution deductions.

In recent years, many taxpayers received stimulus Economic Impact Payments to help cover their expenses during the COVID-19 pandemic. In 2022, no stimulus payments were issued, so taxpayers won’t see the higher return as in years past.

The IRS also changed the way charitable contributions affect tax refunds.

Taxpayers who opt for the standard deduction instead of itemizing when filing their taxes will not be able to deduct charitable contributions, which is a change from past years and will be reflected in the size of tax refunds.

Tax season dates to know

The 2022 tax season started Monday, Jan. 23 and runs until Tuesday, April 18.

  • Jan.: IRS Free File system opened.

  • Jan. 23: IRS officially started accepting and processing individual 2022 tax returns.

  • April 18: The national due date to file a 2022 tax return or request an extension.

  • Oct. 16: The deadline to file a tax return for those who request an extension.

When to expect your tax refund

The IRS estimates that most refunds will be issued in 21 days or less from when you file, but there are some caveats.

Any taxpayer filing a return that includes an Earned Income Tax Credit or Additional Child Tax Credit may have to wait a bit longer, depending on when they file their return. The IRS said it is unable to issue these returns until mid-February, so early filers should start to see those returns in their accounts around Feb. 28.

Once you file your tax return, you can check the IRS’ “Where’s My Refund” system to track your refund starting 24 hours after you file. To track your refund visit https://www.irs.gov/refunds.

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