IRS releases updated tax numbers for 2026
The IRS releases updated federal income tax brackets and standard deductions for tax year 2026, which apply to returns filed in 2027.
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With tax refunds expected to be huge this year, many Americans may want to know that the fastest way to get their refund is through free electronic direct deposit.
Every year, tax refunds mark the biggest payday of the year for millions of Americans. Typically, 75% of Americans receive a refund each year. The average refund in 2025 was $2,939, according to IRS data. New provisions in President Donald Trump’s massive tax and spending bill could increase refunds by up to 30% this year, said James Knightley, chief international economist at Dutch bank ING.
Nine out of 10 taxpayers already receive their refund through direct deposit, but the IRS wants to increase that number even further because it’s the fastest and safest way to receive payments from the government. The IRS began phasing out paper checks for individual taxpayers on September 30 of last year.
“Paper checks are more than 16 times more likely to be lost, stolen, altered, or delayed than electronic payments,” the IRS said. “Direct deposit also avoids the possibility of your refund check being returned to the IRS as undeliverable.”
You can even increase the speed. “A combination of direct deposit and electronic filing is the fastest way to receive your refund,” the IRS said.
How do I sign up for direct deposit?
- If you are using tax software:
Select Direct Deposit as your refund method and enter your bank account number and routing number. The routing number that identifies your bank’s branch location can be found in the bottom left corner of your check or on your bank’s website. The account number is located in the bottom right corner of the check. Alternatively, sign in to your online banking account or call your bank branch.
- If using Taxpayer:
Let the pro know that you would like to make a direct deposit. They should know what to do.
Be sure to mark your return as “Direct Deposit” and include your information. Please be sure to double-check your entries to avoid mistakes or delays. If you forget your account number or routing number, the IRS may send you a paper check.
What if I don’t have a bank account?
Find your bank using the FDIC website or the National Credit Union Administration’s Credit Union Locator Tool. You can usually open a bank account quickly. You can also ask the creator 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 a routing number and account number, which may be different from your card number. Check with your financial institution to see if your card or app can accept deposits, and double-check your routing and account numbers.
Can I split my refund across multiple accounts?
yes. You can expect your refund to be larger than usual, so paying in installments is a convenient way to manage your money. You can transfer a portion of your refund to your account for immediate use and a portion for future savings.
You can file your return electronically using tax software, or if you file a paper return, you can use IRS Form 8888, Refund Distribution.
You can split your refund in any proportion and deposit funds directly into up to three different accounts at a U.S. financial institution, reloadable prepaid debit card, or mobile app.
Refunds can only be deposited directly into a U.S. or U.S.-related account in your name, your spouse’s name, or both in the case of a joint account. Only three electronic refunds may be deposited to a single financial account or prepaid debit card.
How long does it take to receive my tax refund via direct deposit?
For taxpayers who file electronically and choose direct deposit, most refunds are issued within 21 days.
The IRS’ “Where’s My Refund” tool allows you to track when the IRS received your tax return, approved your refund, and issued your refund. The money should be in your account within five days from the date the IRS approves your refund.
The IRS says if you mailed a paper return and are expecting a refund, it could take more than four weeks for your return to be processed.
If you claimed the Earned Income Tax Credit or the Supplemental Child Tax Credit, the IRS cannot, by law, issue those refunds until mid-February. The report said it expects most EITC/Supplemental CTC-related refunds for early filers to be available in taxpayers’ bank accounts or debit cards by March 3, if they choose direct deposit and there are no other issues with their tax returns.
Can I track my refund?
yes. Whether you receive a paper check or have it deposited directly into one account or three accounts, you can use Where’s My Refund? Check out the features on the IRS website or call 800-829-1954.
You can check the status of your income tax refund after 24 hours if you filed electronically or 4 weeks if you filed paper. Information is updated once a day and overnight. Your return will require your Social Security or Taxpayer ID number, filing status, and exact refund amount.
If you split your refund, a “Where’s my refund?” message will be included confirming that your refund has been split, but it won’t specify the amount that will be credited to each account. You’ll see the estimated date of your deposit, and if the IRS adjusts your refund due to a calculation error or other reason, you’ll also see the amount of that adjustment.
Medora Lee is USA TODAY’s money, markets and personal finance reporter. Please contact us at mjlee@usatoday.com. Subscribe to our free Daily Money newsletter for personal finance tips and business news every Monday through Friday morning.
