Court ruling could result in millions of dollars in IRS coronavirus tax refunds
A federal court ruling has brought back the issue of COVID-19-era taxes and could leave some Americans owed refunds.
Nearly half of American taxpayers rely on IRS refunds to pay bills and get out of debt, a new study finds.
This is a good year for refunds. The IRS has refunded $161 billion to individual taxpayers through March 6th. That’s 11% more than the IRS refunded through the same week in 2025. The average refund amount was $3,676, which was also an increase from last year.
Thanks to President Donald Trump’s One Big Beautiful Bill Act, refunds are higher and taxes are lower this year, according to an analysis by the nonpartisan Tax Foundation.
Many Americans will count their tax refunds in 2026 as the single largest check they’ll ever deposit.
“It’s not very often that you get a large check in the mail,” said Matt Schultz, chief consumer finance analyst at LendingTree.
And judging by a March 16 LendingTree survey, many of us are already mentally spending that money many times over.
Of the more than 1,500 taxpayers surveyed, 46% said they were counting on their refund in 2026. In the previous three surveys, only a small percentage of taxpayers said they relied on funds from the IRS.
In a volatile economy, taxpayers rely on IRS refunds
Refunds come at a dangerous time for American consumers. The stock market is falling. Gasoline prices have risen considerably. The job market appears to be tight.
“The reality in 2026 is that many people need a little help to make ends meet,” Schultz said.
But some Americans may be overly optimistic about their chances of receiving a refund. In a LendingTree survey conducted in early February, nearly nine in 10 filers said they expected to get one. The survey was conducted before most taxpayers filed their returns.
In fact, less than two-thirds of taxpayers receive a refund, according to 2025 IRS data.
Some specific demographic groups seem to expect a refund more than others.
- 63% of parents with children under 18 rely on reimbursement, compared to 32% of parents with adult children.
- 58% of Millennials expect a refund, compared to only 45% of Gen Xers.
- 48% of men rely on refunds compared to 44% of women.
Roughly two in three taxpayers say their tax refund is important to their “overall financial health,” the survey found. One in three people said they were dependent on it.
How do taxpayers plan to use their refunds?
Rising prices have been a constant theme for consumers over the past five years. It’s no wonder, then, that many taxpayers plan to use their tax refunds to pay for everyday living expenses. Below is a list of the top 10 ways people plan to spend their checks.
- Payment of daily living expenses (34%)
- Pay off debt (34%)
- Deposit in savings account/emergency fund (32%)
- Save it for a big purchase (19%)
- “I buy what I wanted” (18%)
- Add to your retirement savings (15%)
- Help support family (13%)
- Take a vacation (13%)
- Invest in stocks (11%)
- Donate to charity (8%)
Where is my refund?
If you’re expecting a refund, you can track your progress at Where’s my refund? IRS website page. Tax authorities say they will be able to check the status of their refund 24 hours after filing their 2025 return electronically. If you file a paper return, wait four weeks.
If you file a paper return, it will take longer for your refund to arrive. According to the IRS, it typically takes three weeks after you file electronically and six weeks (or more) after the IRS receives your return by mail.
Another tip: If you receive your refund via direct deposit, you’ll receive it much faster.
