The number of tax returns the IRS has received so far this tax season is down from last year, but refunds are up by double digits, IRS data shows.
The average refund through February 6 was $2,290, up nearly 11% from $2,065 at the same time in 2025, while the total return received fell 5.2%. The IRS noted that refund numbers should also increase further because refunds claiming the Earned Income Tax Credit (EITC) or the Additional Child Tax Credit (ACTC) are required by law until February 15.
These “refund figures do not include the millions of EITC and ACTC refunds to these taxpayers,” the agency said in its news release. “This means that refund figures expected to be released on February 27 for refunds processed through February 20 are expected to be higher.”
That should be encouraging news for Americans struggling under the weight of higher prices and a slowing labor market, analysts said.
“Higher refunds should be a boost for consumers, especially lower-income consumers who use tax refunds to pay down debt and expensive purchases,” said Mihir Bhatia, an analyst at Bank of America.
The average refunds are large. How can I get mine faster?
“Combining direct deposit with electronic filing is the fastest way to receive your refund,” the IRS said. Most refunds are issued within 21 days for taxpayers who electronically filed an error-free return and opted for direct deposit.
Nine out of 10 taxpayers already receive their tax refunds via direct deposit, but to bring that closer to 100%, the IRS began phasing out paper checks 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?
The IRS ‘Where’s My Refund’ tool allows you to keep track of when the IRS received your tax return, when it approved a refund, and when it issued the refund. The money should appear in your account within five days of the date the IRS approves your refund.
If you sent a paper return and are expecting a refund, it may take four weeks or more to process your return, the IRS said.
Because refunds for Americans who have claimed the EITC/ACTC may not be released to early filers until mid-February, those taxpayers may have to wait until about March 3 to see their refunds appear in their bank accounts or on debit cards, if they opted for direct deposit and there are no tax filing issues.
If you don’t have a bank account, you can find one through the FDIC website or the National Credit Union Administration using their Credit Union Locator Tool. Normally people can open a bank account quite quickly. You can also ask your tax advisor if they offer other electronic payment options.
Otherwise, you may be able to deposit your refund to a reloadable prepaid debit card or mobile app. Many reloadable prepaid cards and mobile apps have routing and account numbers, which may differ from the card number. Contact your financial institution to ensure 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 big responsibility, so make sure you don’t give it all away, financial experts say. Here are some ideas:
- Since refunds are expected to be larger than normal, splitting a refund can be a useful way to manage your money. You can split the refund in any ratio you want, sending some to an account for immediate use and some for future savings, on up to three different accounts at U.S. financial institutions, reloadable prepaid debit cards or mobile apps. You can use your tax software to do this electronically or use IRS Form 8888, Allocation of Refunds if you file a paper return.
- Plan how you want to use the refund before you receive it. This “reduces the risk of overspending by pre-allocating repayment to a task – debt repayment, emergency savings or essential expenses,” says Paul Ricci, CEO of personal lending site Best Egg.
- Prioritize debt reduction and financial health over lifestyle upgrades. “Applying refunds to high-interest balances can reduce financial stress and improve credit utilization,” Ricci said. “Prioritizing emergency savings – 3 to 6 months of costs – helps prevent future dependence on credit when unexpected costs arise.”
Medora Lee is a money, markets and personal finance reporter at USA TODAY. You can reach her at [email protected] and subscribe to our free Daily Money newsletter for personal finance tips and business news, every Monday to Friday.
This article originally appeared on USA TODAY: Tax refunds are big this year, IRS data shows. Here’s how big.
Reporting by Medora Lee, USA TODAY/USA TODAY
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