Overview
- The administration said refunds are up 24% compared with the four-year pre-Trump average and credited last year’s Republican tax law, while downplaying concerns that higher gas prices could lessen the benefit.
- IRS data show the season-to-date average refund is $3,521, which is an 11% increase from last year’s $3,170.
- Officials point to provisions such as no tax on tips and overtime, deductions for car-loan interest, and expanded deductions for some seniors as drivers of larger refunds.
- So far, nearly 89 million returns have been filed and about $221.7 billion in refunds have been paid, according to the latest figures.
- The Congressional Budget Office estimates the law will add $4.2 trillion to the national debt, and financial experts caution that bigger refunds often reflect over-withholding and suggest using the money to pay high-interest debt or boost savings.