Tax refunds to be bigger and come sooner this season, IRS says. Here's why. (2024)

If you filed taxes Monday, you have fairly good odds of getting a bigger refund − and getting it sooner − than in previous years.

Data from the Internal Revenue Service (IRS) shows bigger tax refunds in 2024 compared with previous years. The average filer is expected to receive $3,011 − an increase of $123 from last year, the Associated Press reports. Two out of three taxpayers can expect a refund this year.

As of Monday evening, the IRS estimated that 101 million people had filed tax returns.

Where's my tax refund? How to track your refund through the IRS and when you can expect it

Here's why.

What is the Inflation Reduction Act?

The Inflation Reduction Act, first published in 2022, provided tens of billions of dollars in additional funding to the IRS. The funding aims to improve the agency's customer service and close the tax gap.

This additional funding amounted to $80 billion, the White House reports.

"Thegross tax gapis the difference between what taxpayers owe and what they pay, and in 2021, it clocked in at a very large $688 billion," a statement from the White House says.

People are also reading: Tax Day is here, but you can still file for an extension: What to know

Despite the implementation of the Inflation Reduction Act, the tax gap was $625 billion.

Where is my tax refund?

The IRS has granted over $200 billion in refunds through early April, according to the Associated Press. With the new funding, some can expect to see their refunds in just over a week.

Those who e-filed 2023 taxes can expect a return in about 24 hours, the IRS reports. E-filing for 2021 and 2022 may take three or four days, and those who mailed a paper return can expect to wait around 4 weeks.

To check the status of your federal tax refund, use the "Where's My Refund?" tool.