WASHINGTON — Average federal tax refunds are running almost 20% larger than they were a year ago, the Internal Revenue Service said today.
The IRS also announced that the number of couples and individuals who are filing early returns is down 17.5% from last year.
The returns, due April 15, are the first filed since most provisions of the 1986 tax overhaul took effect. That law, the biggest rewriting of the tax code ever, significantly cut tax rates, raised personal exemptions and reduced or eliminated several individual deductions.
The average refund for the first five weeks of 1988 was $656, up 19.5% from $548 at this time in 1987. The average for returns processed last week was up $100--to $711.