Nearly half (46%) of taxpayers don’t know a refund comes for overpaying taxes to the federal government.
That is one finding of a survey of taxpayers by Credit Karma.
About 70% of Americans typically expect to receive a refund check each year, and many are unsure about the origins of the money.
While 46% knew their tax refund money comes from their paychecks, an equal percentage thought the money was given to them by the government.
Forty percent knew that getting a tax refund means they overpaid income taxes.
About 11 percent knew it meant they were essentially giving the government an interest-free loan.
More than half of respondents (51 percent) did not know they could determine whether they get a refund each year by adjusting their withholding amounts.
More than half said they would rather get a tax refund than consistently have more money in their paychecks throughout the year.
Only 34% said they would prefer to have proper withholding.
According to data from the IRS, the average refund amount as of February 7 was $1,952–up 0.2 % (or $3)–when compared with 2019. The number of refunds issued was down 4.8%, as the tax agency paid 4.6% less cash.
