IRS data from the fourth week of the 2026 tax filing season shows that tax refunds are climbing significantly compared to last year, even as overall filing numbers lag behind 2025 levels. According to statistics for the week ending February 20, 2026, the average tax refund now stands at $3,804, representing a 10.2% increase from $3,453 at the same point in 2025.
The IRS received 41,892,000 individual income tax returns as of February 20, 2026, down 1.9% from 42,707,000 at the same point last year. Processing numbers reflect a similar slowdown, with the agency processing 41,362,000 returns compared with 42,396,000 in 2025, a decline of 2.4%.
Despite the promise of higher tax refunds, taxpayers appear to be taking a more measured approach to filing this season. The total number of refunds issued so far is 28,738,000, down 3.0% from 29,615,000 last year. However, the total amount refunded has reached $109.329 billion, up 6.9% from $102.253 billion in the previous year.
Tax Refund Increases Linked to Recent Legislation
The substantial jump in refund amounts can be largely attributed to the One Big Beautiful Bill Act, which took effect in July 2025. The legislation expanded several tax breaks, including a higher standard deduction, larger child tax credits, and new deductions for overtime and tip income.
Additionally, the IRS did not update withholding tables to reflect many of these changes, according to tax policy experts. As a result, many taxpayers likely overpaid throughout the year, leading to larger refunds when filing their 2025 returns in 2026.
Refund growth is expected to be most noticeable among middle-income households earning roughly $50,000 to $150,000, families benefiting from expanded dependent credits, workers with tip or overtime income, and older taxpayers who qualify for additional senior deductions. Direct deposit data shows 29,099,000 refunds issued via direct deposit totaling $110.825 billion, up 8.4% from last year.
Filing Methods Show Shifting Patterns
The IRS has received 41,377,000 e-filed returns so far this season, compared with 41,896,000 at the same point last year, a modest 1.2% decrease. Of those electronic returns, 17,795,000 were filed by tax professionals, down 2.9%, while 23,582,000 were self-prepared, up 0.1%.
Meanwhile, web traffic to IRS.gov has surged dramatically. As of February 20, 2026, there have been 244,503,000 visits to the website, compared with 167,087,000 at the same point in 2025, representing a striking 46.3% increase. This spike suggests taxpayers are actively searching for information about refund timing, filing changes, and new tax provisions.
The agency continues to encourage taxpayers to e-file, noting that it is typically faster, more secure, and more accurate than paper filing. For those seeking free filing options, the IRS Free File program remains available, though eligibility becomes more limited as income rises or returns grow more complex. However, the IRS shut down its Direct File program in 2026 after criticism from Republican lawmakers and opposition from commercial tax preparation companies.
PATH Act Holds Released
The PATH Act requires the IRS to hold refunds tied to the Earned Income Tax Credit and the Additional Child Tax Credit until mid-February. These refunds subject to the statutory hold were excluded from early-season statistics. With the hold now lifted, EITC and ACTC filers should begin receiving their tax refunds in the coming days.
Taxpayers can check their refund status using the “Where’s My Refund?” tool on IRS.gov, which provides confirmation that the return was received, approval of the refund, and the refund issuance date. According to the IRS, information about refunds is typically available within 24 hours of e-filing or about four weeks after mailing a paper return.
The IRS opened the 2026 tax filing season on January 26, 2026, and expects approximately 164 million individual returns for tax year 2025 to be filed before the April 15 deadline. While filing numbers currently trail 2025 levels, the gap has narrowed in recent weeks, and it remains uncertain whether filing volume will accelerate or whether taxpayers are simply adopting a more deliberate approach this season.
