The 2021 tax filing season presented notable statistical trends that reflect both overall filing patterns and taxpayer choices amid changing economic conditions. Compared to the same period in 2020, the 2021 tax season showed significant variations, particularly in submission methods and refund distributions.

Declining Filing Numbers

Data shows that as of March 19, 2021, the IRS received 76,097,000 individual income tax returns , representing a 9.6% decrease from the 84,222,000 received by the same date in 2020. Processed returns saw an even steeper decline, with 67,704,000 returns processed in 2021 compared to 81,158,000 the previous year - a 16.6% drop . These trends raise questions about their connection to economic recovery pace, taxpayer adaptation to filing procedures, and ongoing pandemic impacts.

Electronic Filing Trends

Electronic filings totaled 72,730,000 in 2021, down 8.7% from 2020's 79,688,000. Professional-prepared e-files saw the largest decrease, falling 15.7% from 41,003,000 to 34,566,000. Conversely, self-prepared e-files increased slightly by 1.3% (38,164,000 to 38,685,000), suggesting continued taxpayer comfort with DIY filing platforms despite the overall decline.

Surge in Online Engagement

IRS.gov recorded 879,042,000 visits during the 2021 filing season - a 138.1% explosion from 2020's 369,251,000 visits. This dramatic increase indicates heightened public interest, potentially driven by curiosity about tax policy changes and widespread attention to economic stimulus measures.

Refund Patterns

Despite slower processing, the IRS issued 49,722,000 refunds totaling $145.63 billion in 2021, with an average refund of $2,929 . This compares to 65,097,000 refunds ($191.11 billion) averaging $2,936 in 2020. The data suggests that despite reduced filing volumes, taxpayers could still expect refunds - potentially providing economic relief and boosting consumer confidence.

Direct deposit refunds showed similar declines, with 47,093,000 issued (totaling $140.43 billion) in 2021 versus 55,584,000 ($171.16 billion) in 2020 - representing 15.3% and 18.0% decreases respectively. The average direct deposit refund fell slightly from $3,079 to $2,982 .

The 2021 tax season data reveals significant behavioral shifts from 2020, offering insights into taxpayer adaptation during economic recovery. These statistics not only reflect individual taxpayer experiences but provide valuable indicators for analyzing broader economic trends.