The IRS has already issued over $127 billion in federal income tax refunds this season. (Photo: TurboTax)
The IRS has already issued over $127 billion in federal income tax refunds this season.
The average refund for the tax year 2022 as of March 3 was $3,028, an 11% decrease from last year when the child tax credit and other tax breaks were expanded, but some States receive the biggest tax refunds.
However, this is only the national average. How much money do taxpayers in each state get back?
Lending Tree, an online loan platform, has ranked all 50 states and the District of Columbia by average refund for the tax year 2020, the most recent year for which complete data is available.
READ ALSO: The Process of Getting a Tax Refund: How Long Does It Take?
The states with the biggest tax refunds.
According to Lending Tree’s analysis of IRS data for returns filed from January 1 to December 31, 2021, more than three-quarters (76%) of Americans received a refund for the tax year 2020.
The average refund in the United States was $3,745. On the other hand, Wyoming is one of the states who got the biggest tax refunds. Its
taxpayers received more than $1,000 more from Uncle Sam, topping the list with an average refund of $4,877.
Wyoming is the least populous state in the United States and one of nine that does not collect income tax.
Here’s a breakdown of the top ten. The Lending Tree website shows the rankings for all 50 states and the District of Columbia.
Which state’s average refund was the smallest?
Maine was near the bottom of the refund list. Taxpayers in Pine Tree State received an average refund of $2,920, only 40% of what people in Wyoming received.
On the bright side, Maine’s figures are up 6% from 2019 ($2,752) and 2018 ($2,743).
Increased tax breaks for families were most likely a factor again: Maine has one of the smallest average household sizes in the US, at 2.31 people.
How does your state compare?
The average refund in the tax year 2020 was $3,745, about 3% higher than the previous year.
However, the average in 12 states and the District of Columbia are a few of the States who receive the biggest tax refunds and exceeded the average figure.
READ ALSO: Saver’s Credit: Taxpayers Can Receive Up to $2,000 Credit
