Survey finds many Americans are hesitant to pay taxes amid IRS staff cuts
Think you won’t get audited if the IRS staff is reduced? Experts say you might want to think again.
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IRS data shows the IRS has received fewer tax returns so far this tax season than last year, but refunds have increased by double digits.
Through February 6, the average refund amount was $2,290, an increase of nearly 11% from $2,065 during the same period in 2025, but the total amount of returns received decreased by 5.2%. The IRS noted that the number of refunds should also increase because the law requires that refunds claiming the Earned Income Tax Credit (EITC) or Additional Child Tax Credit (ACTC) be held until February 15.
These “refund amounts do not include millions of EITC and ACTC refunds to these taxpayers,” the agency said in a release. “This means that for refunds processed by February 20th, the number of refunds scheduled to be announced on February 27th is expected to be even higher.”
Analysts said this should be encouraging news for Americans struggling under the weight of rising prices and a slowing job market.
“The increase in tax refunds should be a boost for consumers, especially low-income earners who use their tax refunds to pay off debt or make big purchases,” said Mihir Bhatia, an analyst at Bank of America.
The average refund amount is high. How can I get mine faster?
“A combination of direct deposit and electronic filing is the fastest way to receive your refund,” the IRS said. For taxpayers who file a complete return electronically and choose direct deposit, most refunds will be issued within 21 days.
Nine out of 10 taxpayers already receive their tax refund through direct deposit, but to bring it closer to 100%, the IRS began phasing out paper checks last September.
“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.”
How do I know when my refund will arrive?
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.
Refunds for Americans who claimed EITC/ACTC will not be released until mid-February for early filers, so these taxpayers may have to wait until around March 3 for their refunds to show up in their bank accounts or debit cards if they choose direct deposit and there are no issues with their tax returns.
If you don’t have a bank account, find one 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 your tax professional 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.
How should people take advantage of their tax refunds?
Financial experts say a big check comes with a big responsibility, so make sure you don’t spend it all. Here are some ideas:
- You can expect your refund to be larger than usual, so paying in installments is a convenient way to manage your money. You can split your refund in any proportion and send a portion to your immediate account and a portion to up to three different accounts at a U.S. financial institution, reloadable prepaid debit card, or mobile app 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.
- Plan how you will use your refund before you receive it. “This reduces the risk of overspending by pre-allocating tasks for repayments, such as debt repayments, emergency savings, and necessary expenses,” said Paul Rich, CEO of personal loan site Best Egg.
- Prioritize debt reduction and financial health over lifestyle improvements. “Applying refunds against high-interest balances can reduce financial stress and improve credit utilization,” Rich said. “Prioritizing emergency savings, or three to six months’ worth of expenses, can help you avoid relying on credit when unexpected expenses arise in the future.”
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..
