By Matt Durr
mlive.com
(TNS)
WASHINGTON — Americans continue to see larger refunds compared to 2025, according to the latest data released by the Internal Revenue Service. For the week ending Feb. 27, the average refund was $3,742, up 10.6% over the average of $3,382 for the same timeframe last year.
The average refund for direct deposit is up to $3,739, an 8.8% increase over 2025’s $3,436. So far in 2026, the IRS has distributed $136.5 billion in refunds, up from $124.8 billion in 2025. That represents an increase of 9.4% year-over-year.
The increases come despite the number of returns having been filed and processed being down by 1.7% and 1.8% respectively. So far in 2026, the IRS has received 51.4 million returns and processed 50.8 million.
The average refund is up in large part because specific taxpayers began receiving their refunds in mid-February. Taxpayers who claim the Earned Income Tax Credit or the Additional Child Tax Credit could not begin receiving their refunds until that time due to federal law. The entire refund must be held if the taxpayer claims those credits.
With those refunds being distributed, the average refund continues to climb.
Recommended Articles
However, the agency also expects the numbers to decline as tax season continues. Historically, the refund averages tend to show big increases at the start of tax season, before leveling out as the April 15 deadline approaches.
During tax season, the IRS typically releases a weekly update on the return and refund data.
The overall increase in refunds can be attributed in part to changes in the tax code made as part of the One Big Beautiful Bill Act passed last year. Among the major changes were no tax on overtime and tips, deductions on auto loan interest for American-made vehicles and more.
According to the White House, refunds are expected to rise on average by more than $1,000 in 2026. In 2025, the average refund was worth $3,800, a significant increase from the averages of $3,052 in 2024 and $3,004 in 2023. Increases to the standard deduction are also contributing to the increased refunds.
Typically, taxpayers who submit their return electronically and opt for direct deposit will receive payment within 21 days after the return is accepted. Taxpayers can track the status of their refund through the IRS’s Where’s My Refund tool. According to the IRS, refund status will appear around 24 hours after you e-file a current-year return, three or four days after you e-file a prior-year return, or four weeks after you file a paper return.
Taxpayers have until April 15, 2026, to file their 2025 return, or they may be subject to fines and penalties.
Photo credit: DNY59/iStock
_______
©2026 Advance Local Media LLC. Visit mlive.com. Distributed by Tribune Content Agency LLC.
Thanks for reading CPA Practice Advisor!
Subscribe Already registered? Log In
Need more information? Read the FAQs
