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2mo ago

IRS Says Tax Refunds Top $137 Billion as Larger Payouts Land Following March 2 Release

Bigger refunds reflect new law changes plus prior withholding patterns.

Tax refunds are expected to be bigger on average during the 2026 tax season, as tax filers claim new deductions for tip income, overtime income, interest paid on new car loans for cars and trucks assembled in the United States, and an enhanced deduction for seniors.
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President Donald Trump speaks as Social Security Commissioner Frank Bisignano listens during an event in the Oval Office to mark the 90th anniversary of the Social Security Act, Thursday, Aug. 14, 2025, in Washington. (AP Photo/Alex Brandon)
Stock image/file photo: Tax return form 1040 with U.S. Dollars.

Overview

  • Through Feb. 28, the IRS received more than 51 million returns and issued about 37 million refunds totaling roughly $137 billion, according to figures shared with House Ways and Means.
  • The average refund for early filers was about $3,804 through Feb. 20, up roughly 10% from a year ago, with analysts tying the increase to the One Big Beautiful Bill Act and withholding that did not fully adjust.
  • Many eligible EITC and ACTC filers who e‑filed with direct deposit and error‑free returns were slated to have refunds by March 2, though banks may take additional time to make funds available.
  • Some refunds remain delayed due to PATH Act holds, verification letters, errors, paper or amended filings, injured spouse claims, and operational pressures including a 27% IRS workforce reduction noted by the National Taxpayer Advocate.
  • Separate state refund slowdowns are being reported in Idaho, Oregon, New York, South Carolina and Washington, D.C., tied to conformity and processing issues that could push payments later.