Tax refunds finally increased after two weeks of markedly smaller refunds compared to the same time a year ago, according to the latest data from the Internal Revenue Service (IRS).
Tax refunds are 2% larger than this time last year, but the number of taxpayers filing returns has decreased.
The average refund amount was $3,207 as of Feb. 16, up from $3,140 in the same period last year, the IRS reported. That’s based on nearly 21 million refunds the agency has distributed so far versus nearly 28 million refunds disbursed this time last year, a nearly 25% decrease.
The 2% increase in the average refund is in spite of the fact that the number of returns processed is 6% less than this time last year, based on the weekly filing statistics.
The average amount likely will change as more returns are processed, especially those with the earned income tax credit (EITC), which will be processed this week. The IRS estimates most EITC filers will see their refunds by Feb. 27.
Refunds that include the earned income tax credit (EITC) and the additional child tax credit (ACTC) are delayed by law until mid-February.
Read more about earned income tax credit and the child tax credit.
If you’re unsure when you will receive your tax refund, check out our tax refund calendar.
The number of taxpayers impacted by storms and other natural disasters may add to the low numbers of returns received and processed.
This week, the IRS added taxpayers in San Diego to the growing list of those allowed an extension to file due to storms. Taxpayers in a Federal Emergency Management Agency-declared disaster relief zone are eligible for the extended deadline.
To date, the IRS has extended the filing deadline to June 17 for taxpayers in San Diego, Connecticut, Rhode Island, Maine, West Virginia, and Michigan affected by storms, tornadoes, and flooding.
Read more: 7 ways to file your taxes for free
Ronda Lee is a personal finance senior reporter for Yahoo Finance and attorney with experience in law, insurance, education, and government. Follow her on X @writesronda
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