Overview
- Treasury reported Wednesday that the average refund has reached $3,462, up 11% from last year, with more than 53 million filers using at least one new provision such as no tax on overtime or tips.
- Uptake is broad, including over 25 million claiming the overtime deduction, about 6 million the tips break, and more than 30 million seniors taking an enhanced deduction, with 105 million using the larger standard deduction.
- The White House had touted $1,000 to $2,000 larger refunds, yet IRS data show an increase closer to $300 to $350, and Treasury now emphasizes a 24% gain versus the four-year pre-Trump average.
- Polls show roughly two-thirds of Americans say taxes are too high, and many are bothered that wealthy people underpay as higher gas prices from the Iran war eat into the extra refund money.
- The larger checks reflect retroactive 2025 law changes that cut taxes on tips and overtime and raised standard and senior deductions while last year’s paycheck withholding largely stayed on pre-law tables, leading to bigger spring refunds.