Where average tax refunds are the highest and lowest

IRS data reveals significant variation in average federal tax refunds across US states. Florida, Texas, and Wyoming boast the highest average refunds, nearing $4,000. Maine, Wisconsin, and Oregon show the lowest averages, around $2,700. These figures represent refunds received, excluding those applied to future tax liabilities. State-to-state differences stem from factors like income levels, withholding choices, and other variables. The pandemic's economic impact also influenced refund amounts in recent years. A substantial majority (68%) of 2022 tax filings resulted in refunds. Refunds essentially represent a zero-interest loan to the government. Financial advisors often suggest adjusting withholdings to minimize refunds. This allows individuals to manage their money more effectively through savings or investments.