Question of the Day: What is the average tax refund received by American workers?
- About 80% of workers receive an income tax refund every year. This means that they pay more in taxes during the year then they need to. This is the reason they get a refund. Why do you think workers do this?
- Is receiving a refund of nearly $3000 good for American workers? Why or why not?
- The deadline to file a tax return has been extended to July 15th. If you expect to receive a refund, should you file earlier?
- Do your parents/guardians typically get an income tax refund? If you don’t know the answer, ask your parents/guardians and find out.
Behind the numbers (Bankrate):
As of Dec. 27, 2019, the IRS had received 155.8 million tax returns for the 2018 tax year and of those, 138.2 million were filed electronically. Of e-filed returns, tax professionals prepared 80.6 million of them; the remaining 57.6 million were self-prepared.
There were about 111.8 million refunds issued totaling $320.1 billion, with the average refund being $2,869, a 1.4 percent drop from $2,910 the previous year. Of the refunds, more than 92 million were direct-deposited, which is a 2.1 percent increase from the previous year when slightly more than 90 million refunds were direct-deposited.
Check out our updated Taxes Unit for more ideas on how to bring this important topic to your students!
About the Author
Tim's saving habits started at seven when a neighbor with a broken hip gave him a dog walking job. Her recovery, which took almost a year, resulted in Tim getting to know the bank tellers quite well (and accumulating a savings account balance of over $300!). His recent entrepreneurial adventures have included driving a shredding truck, analyzing executive compensation packages for Fortune 500 companies and helping families make better college financing decisions. After volunteering in 2010 to create and teach a personal finance program at Eastside College Prep in East Palo Alto, Tim saw firsthand the impact of an engaging and activity-based curriculum, which inspired him to start a new non-profit, Next Gen Personal Finance.
To get access to NGPF answer keys, assessments, and teacher-only resources: create a FREE Teacher Account