Tax Filing Season 2024 Sees Early Downturn Amid Pending Legislation

Taxpayers are delaying filings in anticipation of a Senate vote on a bill that could expand the child tax credit, resulting in a nearly 20% drop in early tax returns.

• Early IRS data for 2024 shows a 19.1% decrease in tax returns received compared to the previous year, with many taxpayers waiting on potential legislative changes.
• The proposed Tax Relief for American Families and Workers Act could retroactively expand the child tax credit for the 2023 tax year, influencing filing decisions.
• IRS Commissioner encourages taxpayers to file regardless of pending legislation, but social media and professional circles show reluctance.
• Average tax refund amounts have decreased by almost 29% from the previous year, with the IRS issuing fewer refunds early in the season.
• Despite the early filing downturn, adjustments for inflation and pending legislation could lead to healthier refunds as the season progresses.

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