Tax Refunds Are Up This Year—But Millions Are Delaying Their Tax Filings
The number of tax refunds are up at the beginning of the 2026 tax filing season, even as the number of early tax filings is down compared to the previous year. New information released by the Internal Revenue Service indicates that, although the number of taxpayers rushing to file early is down, those who have filed early are receiving bigger refunds on average.
Higher Refund Amounts Bring Relief to Early Filers
Preliminary information indicates that the average tax refund amount for early filers this season is up compared to last year. Several reasons have been cited for the increase, including changes for inflation, additional tax credits, and improved withholding by employers.
Early filers are taking advantage of refundable credits for dependents and education expenses. Families who are still experiencing high costs of living are finding relief with the bigger refund, even if the overall economic outlook remains uncertain.
Tax professionals indicate that early filers have simpler returns that are processed faster and result in faster refunds.
Why Tax Returns Are Lower This Year
Despite an increase in refunds, the number of tax returns is lower than last year. There are several reasons for this. Some taxpayers are confused about changes in the tax code, while others are waiting for their tax documents, such as forms related to investment income, before filing their taxes.
Also, many taxpayers are waiting to see if Congress passes any last-minute changes to the tax code, which has been happening with greater frequency in recent years. The IRS has stated that most taxpayers should file their taxes as soon as they have all the information to avoid delays later in the season.
What Taxpayers Can Expect in the Coming Days
The IRS expects the number of tax returns to steadily rise as the April deadline approaches. While the amount of refunds may vary as more complex returns are processed, there is no indication of delays at this point, according to the IRS.
Disclaimer
This article is based on information sourced from publicly available data and official updates released by government agencies. Figures may change as the tax season progresses.
