Tax refunds a little larger this yearElectronically filed tax returns are on track with last year and overall refunds are running nearly 10 percent higher so far in 2010, according to statistics issued this week by the Internal Revenue Service.
Electronically filed tax returns are on track with last year and overall refunds are running nearly 10 percent higher so far in 2010, according to statistics issued this week by the Internal Revenue Service.
The statistics, covering the period through March 12, show that while the overall number of tax returns filed this year is down slightly, the percentage of returns using e-file remains strong.
In Minnesota, 87 percent of the nearly 1.2 million returns received so far have come in through electronic filing. Nationally, 82 percent of the 69 million returns have been e-filed.
Additionally, the average federal refund is $3,036, an increase of $266 compared with the same period a year ago.
The refund increase follows a number of federal tax incentives enacted last year as part of the American Recovery and Reinvestment Act, such as the homebuyer credit and the American Opportunity Credit.
“There are several new tax provisions this year and we don’t want anyone to miss out on these valuable tax breaks,” said Carrie Resch, IRS spokesperson.
More than half of Minnesotans have not filed their 2009 federal tax return yet. To get refunds quicker, the IRS reminds these taxpayers that the fastest, easiest way is to e-file and use direct deposit.
E-filers who owe can set a direct debit for a date they choose before the April 15, 2010 deadline. Free e-file options are available for virtually every taxpayer, regardless of income, at IRS.gov.
Taxpayers can learn more about this year’s credits and deductions at IRS.gov/recovery.