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Average Tax Refund Up 10.8%, but Rising Gas Prices Threaten the Boost

New IRS figures show policy-driven increases concentrated among filers using Schedule 1‑A deductions.

Overview

  • As of Mar. 13, the average federal refund was $3,623, up from $3,271 a year earlier, based on 69.7 million processed returns, IRS data show.
  • The national average gasoline price reached about $3.91 per gallon, roughly a dollar higher than a month ago, according to AAA.
  • GasBuddy estimates U.S. drivers have spent about $4.1 billion more on gasoline since Feb. 28 because of the price spike.
  • About 45% of returns have claimed at least one new Schedule 1‑A provision, and those filers are seeing average refund increases of roughly $775, according to IRS testimony and Treasury data.
  • The White House’s January projection of average refunds rising by $1,000 or more has not been reflected in season‑to‑date averages.