IRS: Tax refunds are up this year; here's how much

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WASHINGTON - Tax refunds are up significantly this season compared with the four-year average of refunds before President Donald Trump took office, his administration said Thursday.

Tax refunds up

By the numbers:

According to the Trump administration, tax refunds are up 24% compared with the four-year average – a change credited to Republicans’ tax legislation signed into law last year.

Currently, the average refund amount is $3,521, according to the latest IRS data, which is an 11% increase from last tax year’s $3,170 average refund payment.

Tax payer rebate check sits on a table July 25, 2001 in New York City. (Credit: Spencer Platt/Getty Images)

A Trump administration official who spoke on the condition of anonymity to provide a preview of the data analysis said the increase in refunds is due to tax breaks and spending cuts that impact taxpayers across income brackets, including no tax on tips, no tax on overtime, deductions for car loan interest and certain deductions for seniors.

The official declined to specify which tax deduction had provided the greatest savings for taxpayers. The analysis was based on daily Treasury statements over the 2021-2026 period.

Tax season deadline approaches

Big picture view:

The tax season began in January and with the clock ticking, taxpayers have until April 15 to file their taxes or request an extension.

RELATED: 5 common mistakes that could be costing American taxpayers thousands of dollars every year

This tax season's refunds have been larger following the enactment of the One Big Beautiful Bill Act (OBBBA) at the federal level, which extended lower tax rates that were set to expire and also created new deductions that required the IRS and Treasury Department to implement new rules for handling them.

Several states have informed taxpayers that their state-level tax refunds may be delayed this tax season for a variety of reasons, including the need to update tax forms and systems to account for OBBBA's changes at the federal level. Many taxpayers rely on the financial boost of a tax refund check to help shore up household budgets or for special expenses.