Refunds Are Up, IRS Reports, but They're Not Nearly $1K

Tax season is delivering fatter checks than last year, but not quite as hefty as the White House once hinted. IRS data through March 27 shows the average refund at $3,521, about $350 higher than a year ago, based on 88.4 million individual returns processed so far. The bump comes as taxpayers feel the impact of President Trump's July tax package, CNBC reports, which lowered 2025 taxes but didn't immediately change paycheck withholding—meaning many workers ended up overpaying and are now getting money back.

Republicans have seized on the larger refunds as a selling point ahead of November's elections, highlighting new deductions for tip income, overtime, seniors, and auto loan interest. Treasury Secretary Scott Bessent said nearly half of 2026 returns so far have claimed at least one of those breaks, with the overtime deduction appearing on about a quarter of filings. The administration had suggested that typical taxpayers might see $1,000 or more added to their refund. "We are seeing an uptick in refunds," said Tom O'Saben of the National Association of Tax Professionals, adding that whether it feels "substantial" depends on the filer.