Tax season seems to finally be under way.
Peter Saldamarco, president of Central Auto Auction in Hamden, Conn., said he saw a dramatic uptick in activity at the end of February.
“Tax checks must have come out because it just boomed,” Saldamarco said.
Early season refund numbers and dollar amounts were affected by the new law requiring refunds involving the Earned Income Tax Credit and Additional Child Tax Credit to be held until the later part of February. Many taxpayers claiming these credits traditionally file during the opening weeks of tax season.
As of March 10, the Internal revenue Service received 69,403,000 returns and had processed 67,290,000, refunding more than $167 billion. The average refund so far is $2,973.
Last year at this time, the IRS had received 74,456,000 and processed 72,164,000, refunding almost $176 billion. The average refund was $2,945.
Calendar year-to-year comparisons are difficult at this early point in the season as four additional days of tax return processing are included in the 2016 totals, the IRS states.
Still, used-car dealers seem to be getting their fair share of the money that is coming back, said Manheim chief economist Tom Webb.
“The unusual flow of tax refund monies this year appears to have had less of an effect on dealers than one might expect, especially since other retailers (most notably, TV and appliance stores) did notice a significant impact,” Webb said.