IRS reveals tax refunds are higher this year, giving millions of Americans a welcome boost

The tax season in the US is almost halfway done, and millions of people have already sent their tax returns to the Internal Revenue Service (IRS). Many Americans are expecting refunds in 2026, and some officials even promised “historic” and “massive” refund checks. House Speaker Mike Johnson said in a January press conference that the average refund this year could be about $4,000.

This would be over $800 higher than last year’s average refund of $3,167. However, IRS data released so far shows the current average refund is about $2,290 per person, according to the agency. Even though it is lower than the expected $4,000, refunds are already nearly 11% higher than last year, as per IRS data shared in The Sun report. The IRS said refunds may rise soon because the data only includes returns filed up to February 6.

Refund delays explained

Some refunds were delayed because of a law called the PATH Act, which holds certain tax credits until February 15 to prevent fraud. These delayed refunds include people claiming the Earned Income Tax Credit (EITC) and Additional Child Tax Credit (ACTC). The IRS said millions of these delayed refunds will start going out from late February to early March. The agency also said refund averages will likely increase when new data is released after February 27.


As of February 6, the IRS had received about 22.35 million tax returns and processed over 20.6 million, The Sun reported. This year, the number of returns received is about 5.2% lower than the same time last year. A new survey found most Americans are using refunds for basic needs like rent, groceries, and bills. The poll showed 64% already spent or plan to spend refunds soon, mainly on necessities.

Where people spend refunds

Top spending areas included rent (58%), groceries (48%), credit card debt (29%), and home repairs (13%), according to the survey. Around 72% of people who haven’t spent their refund yet plan to use it only for essentials, the study found. The survey said the average refund people reported receiving was over $2,300, which is higher than earlier predictions. About 61% said tax refunds are very important for their yearly budget.

Some people said they got larger refunds because they worked more hours, changed deductions, or got a pay raise, the survey found. Others said smaller refunds happened due to losing work, moving to a higher tax bracket, or dependents no longer qualifying. Around 62% of taxpayers said they felt happy and surprised by their refund amount, a big rise from last year, The Sun reported. The IRS advised people who want faster refunds to file taxes online and choose direct deposit.

How to get money fast

The IRS says refunds usually arrive within 21 days if e-filed with direct deposit. So far, about 7.6 million direct-deposit refunds have been sent, with an average amount of about $2,388. In total, the IRS has already paid out over $18.1 billion in refunds through direct deposit. The IRS also warned taxpayers to wait until they have all tax documents before filing to avoid delays. Refunds are higher than last year, more money is still coming, and millions of Americans are using the extra cash mainly for basic living needs, according to IRS data and survey findings reported by The Sun.

FAQs

Q1. Why are tax refunds higher this year?

Tax refunds are higher mainly because many people had more income changes, deductions, and tax adjustments, according to the Internal Revenue Service.

Q2. How can I get my tax refund faster?

You can get your refund faster by filing taxes online and choosing direct deposit, which usually takes about 21 days.