Tax Refunds Jump 10.2% This Year
The average IRS tax refund for early filers is up 10.2% compared to last year, now sitting at $3,804 versus $3,453. The increase is driven by more payments including the Earned Income Tax Credit and Additional Child Tax Credit. A CBS News survey shows Americans plan to use bigger refunds primarily for paying down debt and increasing savings rather than discretionary spending.
The larger refunds this season are influenced by the "One Big Beautiful Bill Act," which introduced several new tax provisions. These changes include new deductions for tips and overtime, an increased standard deduction, and a larger child tax credit. While the average refund is up, the pace of filing is slightly behind last year. As of mid-February, the IRS had received 2.6% fewer individual income tax returns and processed 3.1% fewer compared to the same period in 2025. So far, the IRS has issued over $32 billion in refunds, an increase from the $29.6 billion sent out by the same time last year. The total number of refunds issued is around 12.96 million, slightly down from 13.66 million at the same point in the previous year. Taxpayers are actively seeking information this year, as reflected by a significant jump in online activity. Visits to the IRS.gov website have surged by 42% compared to the same period in 2025, totaling over 176 million visits. The distribution of refunds is ongoing, with a significant number of filers who claim the Earned Income Tax Credit or Additional Child Tax Credit expecting their refunds after mid-February due to the PATH Act, a measure aimed at preventing fraud. The IRS anticipates that refund numbers will likely increase as these are processed. For those who file electronically and use direct deposit, the IRS generally issues refunds within 21 days. Taxpayers can track the status of their payment using the "Where's My Refund?" tool on the IRS website and the IRS2Go mobile app.
