Getting a tax refund from the federal government at the end of the year may not always be the best option for lower-income populations, according to the research from Harris School economist Damon Jones.
About 80 percent of Americans who file taxes receive money back—income that was over-withheld throughout the year—said Jones, who studies the intersection of public finance, household economics and behavioral economics. On average, the IRS estimates that taxpayers who receive these refunds get back about $1,000 every year. That average is about $3,000 this year, thanks to temporary stimulus efforts. (more…)