Sunday, March 15, 2009

DIY online tax filers surge

NEW YORK (CNNMoney.com) -- A growing number of people hungry for refund cash are filing their own taxes form home and ahead of schedule, according to a report released Friday.

More than 18 million income tax returns were filed from home computers as of March 6, a 20% surge compared to the same time last year, according to the Internal Revenue Service.

Meanwhile, the number of electronically filed tax returns prepared by tax professionals dipped by 0.2% so far this year.

In total, nearly 52 million tax returns have been e-filed, according to the IRS, a 6% jump from the same time last year.

Even as more people are filing their taxes electronically, the number of filers using the IRS Free File tax program has dropped by about 30%.

As cash-strapped filers are increasingly impatient for their check to arrive in the mail, 7% more have opted to have their refund deposited directly into their bank account this year.

The average refund direct deposited into a filer's bank account was $3,031.Overall, the average refund has been $2,811, according to the IRS.

0:00/2:52401(k): Don't stop believing

Individuals are especially motivated to file their taxes early if they are anticipating a refund, and so the percentage of filers who received a refund is usually very high at the start of the year, according to the IRS.

The government has paid out almost $154 billion in refunds so far this year, a 12.1% increase over the same time last year.

Almost 55 million Americans have received a refund so far this year, or 91% of the almost 60 million returns that the IRS has processed so far. The IRS has received almost 64 million returns so far this year.

The IRS expects to process fewer income tax returns in 2009 than in 2008, because there was a surge in filings last year to obtain a stimulus payment.

Individual income taxes are due by Wednesday, April 15. 


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