How Much Can You Expect to Get Back on Your Tax Refund? Average Refund Amounts by State
Introduction
Tax season can be both a stressful and exciting time for many Americans. It's a time where we all want to make sure we get the most money back possible on our tax refund. However, understanding how much money we can expect to receive can be confusing, especially with all the different variables involved. In this article, we'll be taking a look at the average tax refund amounts by state, and what you can expect to get back on your own tax return.
Factors that Affect Your Tax Refund
Before we dive into the specifics of each state's average tax refund amount, it's important to understand the different factors that can affect your refund. These can include:
1. Filing Status
Your filing status is one of the most important factors in determining your tax refund. There are five different statuses you can choose from: Single, Married Filing Jointly, Married Filing Separately, Head of Household, and Qualifying Widow(er) with Dependent Child. Each status has its own set of tax brackets and deductions, which can impact your refund amount.
2. Income Level
Your income level is another major factor in determining your tax refund. Generally, the more you earn, the higher your tax liability. However, there are many deductions and tax credits available that can reduce your taxable income and ultimately increase your refund amount.
3. Deductions and Credits
Deductions and credits can play a significant role in reducing your taxable income and increasing your refund amount. Common deductions and credits include mortgage interest, charitable contributions, education expenses, and child tax credits.
4. State and Local Taxes
Every state has its own set of income tax brackets and deductions, which can impact your refund amount. Additionally, some states also have local taxes that can further impact your tax liability and refund amount.
The Average Tax Refund by State
According to data from the Internal Revenue Service (IRS), the average tax refund for the 2020 tax year was $2,827. However, this amount varied widely depending on which state you lived in. Here's a breakdown of the average tax refund by state:
- Alabama - $2,534
- Alaska - $2,984
- Arizona - $2,892
- Arkansas - $2,436
- California - $3,013
- Colorado - $2,967
- Connecticut - $3,160
- Delaware - $2,947
- Florida - $2,764
- Georgia - $2,660
- Hawaii - $2,870
- Idaho - $2,623
- Illinois - $2,853
- Indiana - $2,716
- Iowa - $2,735
- Kansas - $2,644
- Kentucky - $2,506
- Louisiana - $2,466
- Maine - $2,915
- Maryland - $2,978
- Massachusetts - $3,176
- Michigan - $2,859
- Minnesota - $2,987
- Mississippi - $2,466
- Missouri - $2,592
- Montana - $2,689
- Nebraska - $2,769
- Nevada - $2,763
- New Hampshire - $2,988
- New Jersey - $3,193
- New Mexico - $2,473
- New York - $3,035
- North Carolina - $2,615
- North Dakota - $2,883
- Ohio - $2,727
- Oklahoma - $2,576
- Oregon - $2,984
- Pennsylvania - $2,827
- Rhode Island - $2,957
- South Carolina - $2,598
- South Dakota - $2,763
- Tennessee - $2,586
- Texas - $2,795
- Utah - $2,618
- Vermont - $2,939
- Virginia - $2,930
- Washington - $2,913
- West Virginia - $2,445
- Wisconsin - $2,759
- Wyoming - $2,906
Conclusion
Understanding how much money you can expect to receive on your tax refund can be complex, but knowing the average refund amounts by state can give you a good idea of what to expect. Remember, there are many different factors that can impact your refund amount, so it's important to keep track of all your deductions and credits to ensure you get the most money back possible.