Tax refunds are big this year, IRS data show. Here's how big.

Core Insights - The IRS has reported a decrease in the number of tax returns received this season compared to last year, while the average refund amount has increased significantly, indicating a potential boost for consumers [1][2]. Group 1: Tax Returns and Refunds - The number of tax returns received by the IRS is down 5.2% compared to the previous year, but the average refund has risen to $2,290, which is an increase of nearly 11% from $2,065 in 2025 [1]. - Refunds claiming the Earned Income Tax Credit (EITC) and Additional Child Tax Credit (ACTC) are not included in the current refund numbers, suggesting that the total refund amounts will likely increase when these are processed [2]. Group 2: Consumer Impact - Higher average refunds are expected to benefit consumers, particularly those with lower incomes, as they often use tax refunds for debt repayment and significant purchases [3]. - Analysts view the increase in refunds as encouraging news for Americans facing high prices and a slowing job market [2]. Group 3: Refund Processing and Delivery - The IRS advises that combining direct deposit with electronic filing is the fastest method to receive refunds, with most refunds issued in less than 21 days for electronically filed returns [4]. - Direct deposit is preferred as it significantly reduces the risk of lost or delayed checks, with paper checks being over 16 times more likely to encounter issues [5]. - Taxpayers who filed paper returns may experience processing delays of four weeks or more, especially for those claiming EITC/ACTC, who may not see their refunds until around March 3 [6].