Overview
- IRS data released Friday show the average refund at $3,397 as of April 10, up 11% from last year, while total refund dollars rose 16% even though fewer returns were filed.
- Treasury Secretary Scott Bessent, speaking Wednesday at the White House, urged workers to change paycheck withholding to boost take-home pay this year.
- Tax experts caution that withholding changes are tricky and say mistakes can leave filers owing next spring, so they point people to the IRS withholding estimator and updated W-4.
- Treasury reports more than 53 million filers claimed at least one new cut on Schedule 1-A, while think tanks say the biggest savings go to higher-income households and to those using the higher SALT cap.
- Rising gasoline costs are eroding the value of larger refunds for many families, which limits how far the extra cash stretches in day-to-day budgets.