Tax Refunds Are Bigger This Year, IRS Data Show. Here is the Great Way.

The number of tax refunds received by the IRS so far this tax season is down from last year, but refunds are up by double digits, IRS data show.

Average return on Feb. 6 was $2,290, up nearly 11% from $2,065 in the same period in 2025 while the amount of returns received decreased by 5.2%. The number of refunds reported by the IRS should rise significantly, too, as returns claiming the Earned Income Tax Credit (EITC) or Additional Child Tax Credit (ACTC) are required by law to be filed by Feb. 15.

These “refund numbers do not include millions in EITC and ACTC refunds to these taxpayers,” the agency said in its release. “This means that the number of refunds expected to be issued on Feb. 27, for refunds that will be processed until Feb. 20, is expected to be higher.”

That should be encouraging news for Americans struggling under the weight of high prices and a sluggish job market, analysts say.

“Higher returns should be a goal for consumers, especially low-income consumers who use tax refunds to pay off debt and make big-ticket purchases,” said Mihir Bhatia, an analyst at Bank of America.

Average returns are huge. How can you get mine fast?

“Combining direct deposit with electronic filing is the fastest way to get your refund,” the IRS says. Most refunds are issued in less than 21 days to taxpayers who file a flawless return electronically and choose direct deposit.

Nine out of 10 taxpayers already receive their tax refunds by direct deposit, but to increase that to close to 100%, the IRS began eliminating paper audits last September.

“Paper checks are 16 times more likely to be lost, stolen, altered, or delayed than electronic payments,” the IRS said. “Direct deposit also avoids the possibility of a refund check being returned to the IRS as undeliverable.”

How do I know when my refund will arrive?

With the IRS’s “Where’s My Refund” tool, you can track when the IRS received your tax refund, when it approved a refund and when it issued a refund. The money should be in your account within five days of the date the IRS approves your return.

If you filed a paper return and are expecting a refund, it may take four weeks or more to process your return, the IRS says.

Since refunds for Americans claiming EITC/ACTC cannot be issued until mid-February for first filers, those taxpayers may have to wait until March 3 to see their refunds in their bank accounts or credit cards, if they chose direct deposit and there are no issues with the tax refund.

If you don’t have a bank account, find one through the FDIC or National Credit Union Administration website using their Credit Union Locator tool. Generally, people can open a bank account very quickly. You can also ask your tax preparer if they offer other electronic payment options.

If not, you may be able to deposit your refund on a reloadable debit card or mobile app. Most prepaid cards with reloadable mobile apps have routing and account numbers, which may differ from the card number. Check with your financial institution to make sure your card or app can receive the deposit and double check the routing and account numbers.

How should people use their tax refund?

With that big check comes a big responsibility, so make sure you don’t blow it all away, say financial experts. Here are some ideas:

• Since returns are expected to be larger than usual, splitting returns can be a simple way to manage your money. You can split the refund in any portion you want, sending one to an account for immediate use and one to save for the future, in up to three separate accounts with US financial institutions, reloadable debit cards, or mobile apps. You can use your tax software to do it electronically or use IRS Form 8888, Distribution of Return if you file a paper return.
• Plan how to use the refund before you receive it. This “reduces the risk of overspending by giving the repayments work ahead of time – a debt payment, emergency savings, or important expenses,” said Paul Ricci, chief executive officer of the personal loan site Best Egg.
• Put debt reduction and financial health ahead of lifestyle improvements. “Using cash-back on high-interest balances can reduce financial stress and improve credit utilization,” Ricci said. “Prioritizing emergency savings – 3 to 6 months – helps prevent future reliance on debt when unexpected expenses arise.”

Medora Lee is a money, markets, and personal finance reporter for USA TODAY. You can find him at [email protected] and subscribe to our free Daily Money newsletter for personal finance tips and business news every Monday through Friday.

This article first appeared in USA TODAY: Tax refunds are big this year, IRS data show. Here’s how big it is.

Reported by Medora Lee, USA TODAY / USA TODAY

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