What you need to know about the tax system in 2025
Learn how the 2025 tax brackets work and what it means for your income taxes this season.
- The IRS processed more than 41.3 million returns in the first four weeks ending February 20, compared to the same period a year ago. Compared to the previous year, it decreased by 2.4%.
- As of February 20 this year, taxpayers have received more than $109.3 billion in tax refunds, an increase of 6.9% from a year ago.
The average tax refund so far in the 2026 tax season is unlikely to be $1,000 higher than it was a year ago, as the White House has indicated. However, the price has increased by $351.
In data released Friday, Feb. 27, the Internal Revenue Service showed the average refund for early filers through Feb. 20 was $3,804.
This is an increase of 10.2% compared to the average of $3,453 for the same period a year ago.
The latest statistics compare the results of this year’s filing season, which ended February 20, 2025, with last year’s results, which ended February 21, 2025. The IRS began accepting and processing federal income tax returns on January 26th. The result is a glimpse into the first four weeks of the long tax season. The submission deadline is April 15th.
The IRS has issued more than 28.7 million tax refunds through February 20, according to the latest data released on Friday, February 27.
This is a 3% decrease from the same period a year ago, when more than 29.6 million federal income tax refunds were issued.
The average return is certainly larger than what was seen during the same period in 2025. However, it still falls short of some expectations.
According to a post on the White House’s site, the One Big Beautiful Bill Act is “the biggest tax refund season in history, and its innovative policies are expected to increase the average tax refund by more than $1,000 this year.”
The average federal income tax refund last year was $3,167 at the end of 2025, an increase of 0.9% from 2024, according to the IRS.
Will the average refund increase by nearly 32% to $4,167 by the end of 2026? Let’s see what happens. The IRS issues weekly tax season updates.
As of February 20 this year, taxpayers have received more than $109.3 billion in tax refunds, an increase of 6.9% from a year ago.
By law, the Internal Revenue Service cannot issue federal income tax refunds before February 15 on returns that claim the Earned Income Tax Credit or the Supplemental Child Tax Credit.
This year, the IRS expects that most refunds for early filers who claim the Earned Income Tax Credit and the Supplemental Child Tax Credit will be available in bank accounts or debit cards by March 2, if the taxpayer chooses direct deposit and there are no other issues with their return.
Some experts remain concerned that some taxpayers could be delayed in receiving their tax refunds this year, especially if they claim new tax breaks on things like tip income, overtime pay, new-car loan interest on cars that are finally assembled in the U.S., and a new enhanced credit for seniors.
National Taxpayer Advocate Erin Collins noted that this tax season, the IRS faces all the challenges of implementing a 27% reduction in staffing, a change in agency leadership, and complex tax code changes that have been retroactive to 2025 since the One Big Beautiful Bill was signed on July 4th.
The IRS processed more than 41.3 million returns in the first four weeks ending February 20, compared to the same period a year ago. Compared to the previous year, it decreased by 2.4%.
The IRS had received more than 41.8 million tax returns through February 20, down 1.9% from a year earlier.
Certain statistics seem to indicate that taxpayers have a lot of questions this tax season. Visits to IRS.gov, where many questions can be answered, increased by 46.3% in the first four weeks. The IRS website has received more than 244.5 million visits so far this year, according to the latest report.
Contact personal finance columnist Susan Tompol: stompor@freepress.com. follow himr X @tompor.
