I bet you’re already dreading preparing your taxes before the tax deadline on April 15th. Despite the government shutdown, the IRS has already started to process tax returns. How many of you are expecting a return?
According to Smart Asset Louisiana is one of the states with the highest average tax refunds according to 2016 data.
SA analyzed several metrics to determine the states with the highest and lowest average tax refunds in the country. The two main areas Smart Asset studied were the total income tax refunds and the number of income tax returns for each state.
The top states with the biggest refunds include-
- Texas $3,133
- Oklahoma $3,088
- Louisiana $3,099
- New York $2,986
- Connecticut $2,958
The states with the lowest average tax refunds would include Montana, Wisconsin, Vermont, Oregan and, at #50 is Maine with an average return of $2302.
Getting a return is always better than having to owe Uncle Sam cash but keep in mind if you receive a tax return that means you’ve overpaid in your annual taxes and you are letting the government use your money to operate the government and they are not paying you interest on that cash.
Remember the new tax laws went into effect for 2018 and there have been many changes to the tax laws on what is acceptable when making deductions for 2017. You can get familiar with the new tax laws here.