As the 2024 tax season concludes, newly released statistics from the Internal Revenue Service (IRS) reveal significant shifts in filing behaviors, refund patterns, and taxpayer engagement. The data provides insights into broader economic recovery trends and evolving taxpayer preferences in a post-pandemic landscape.

Overall Filing Trends Show Steady Growth

The IRS processed 141.36 million individual income tax returns between April 28, 2023, and April 26, 2024, marking a 1.4% increase from the previous year. This modest growth reflects both economic stabilization and improved labor market conditions following the pandemic's disruptions.

Electronic filing continues to dominate, with 135.72 million e-filed returns (a 1.9% increase), representing 96% of all submissions. Professional tax preparers accounted for 72.2 million submissions (up 1.2%), while self-prepared returns grew more substantially at 63.52 million (a 2.7% increase).

Digital Engagement Surges

IRS.gov saw 591.74 million visits during the filing season - a dramatic 16.7% increase year-over-year. This surge suggests growing taxpayer reliance on digital resources for tax information and services, likely driven by improved online tools and educational outreach efforts.

Refund Patterns Reveal Economic Complexities

While total refunds issued declined slightly to 91.36 million (down 0.5%), the total refund amount rose to $260.56 billion (up 2.2%). The average refund climbed to $2,852 , a 2.7% increase from 2023.

Direct deposit usage declined by 2.4% to 84.66 million transactions, though the total amount deposited electronically still grew by 0.8% to $249.31 billion. The average direct deposit refund reached $2,945 (up 3.4%).

Policy and Economic Impacts

The mixed refund data suggests lingering effects from expired pandemic relief programs alongside economic recovery among higher-income taxpayers. The IRS's service improvements and educational initiatives appear to be increasing compliance and digital adoption, particularly among younger filers.

Looking Ahead

Experts anticipate continued growth in e-filing and self-preparation tools in 2025, with potential fluctuations in refund volumes depending on economic conditions and potential tax policy changes. The IRS is expected to further enhance digital services to meet evolving taxpayer expectations.

The 2024 data underscores how economic recovery, technological adaptation, and policy changes collectively shape tax administration. As digital transformation accelerates, both the IRS and taxpayers appear increasingly prepared for more efficient, transparent filing processes in future seasons.