As the April 15 tax filing deadline nears, the IRS has released data revealing a significant rise in average tax refunds for the 2026 filing season. Through March 20, the average refund has climbed to $3,571, marking a 10.9% increase from the $3,221 average at the same point last year. This growth coincides with the IRS refunding over $202 billion to taxpayers so far in 2026, a 12.9% jump from $179 billion last year.
The total number of refunds issued increased modestly by 1.8% to just over 56.7 million, translating to approximately 1 million more refunds compared to 2025. However, the overall filing season pace is slightly slower: nearly 78.9 million tax returns have been received—a 0.9% decline—and about 77.8 million returns processed, down 1.1% from the previous year.
A notable shift is underway in how taxpayers file. Self-prepared returns have risen 1.9% to more than 37.8 million, suggesting that more Americans are completing their own tax submissions this year. Conversely, returns filed electronically by tax professionals have decreased by 1%, totaling 39.7 million so far.
Direct deposit refunds remain the dominant method of receiving refunds, with numbers rising 6.5% to nearly 57.3 million. The average direct deposit refund amount has increased by 8.4% to $3,561, while the total refunded via direct deposit surged 15.5% to nearly $204 billion. This aligns with the IRS’s ongoing phaseout of paper refund checks, which began last fall. While paper checks are now typically discontinued, they remain available in limited situations, such as for taxpayers without bank accounts who may receive funds via prepaid debit cards or digital wallets instead.
Alongside these figures, the IRS website has seen a 55.6% increase in visits this season—rising from 244 million to over 380 million—potentially driven by changes in federal tax law under last year’s One Big Beautiful Bill Act. Noteworthy adjustments in this legislation include new deductions for tip income and overtime, enhanced senior-specific deductions, an auto loan interest deduction, and the introduction of “Trump Accounts,” savings accounts funded by the government for newborns and available for older children.
Taxpayers planning to file have until April 15 to submit their returns or request extensions, though those seeking extensions must still make an estimated tax payment by that date.
Why it matters
The rise in average refund amounts suggests taxpayers may be benefiting from recent federal tax law changes or other economic factors influencing withholding and credits. The IRS’s increasing emphasis on direct deposit expedites funds receipt and reduces fraud risks compared to paper checks. The shift towards self-prepared returns may also reflect growing taxpayer confidence in digital filing tools or a desire to reduce costs associated with professional preparation. This data provides insight into taxpayer behavior and federal disbursement trends as the filing deadline approaches, offering both individuals and tax professionals a clearer picture of the current season’s landscape.
Background
The 2026 tax filing season follows the enactment of the One Big Beautiful Bill Act, legislation signed last year that introduced several tax code reforms affecting deductions and credits. These changes have likely influenced filing patterns, refund amounts, and IRS online traffic. The IRS’s effort to phase out paper refund checks aims to modernize federal payment systems and improve refund security. This transition also reflects broader trends in digital finance and government services modernization.
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