The average size of a tax refund dipped to $3,012 in the week ended March 6, down from $3,064 in the February 28 week and further fading from the season’s peak of $3,125 in the February 21 week. The size of tax refunds are looking quite similar to those received in the 2019 tax filing season.
The pace of refunds certified is a bit behind last year, but not significantly. Overall the tax season seems to be progressing normally, perhaps in part because there were relatively few changes in tax law for 2019 compared to 2018. With refund sizes running about the same as in recent year and arriving at a similar time, there may not be any noticeable effect on retail sales. However, consumers do appear to be in a buying mood with the arrival of spring, so these may help boost spending already in the works.
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