Story perspectives

Average Tax Refunds Rise, But Overpayments Worry Experts

3/20/2026

Summary

Story summary

Average federal tax refunds are higher this year, totaling $3,676, up from $3,324 last year.
The increase is smaller than the White House's previously projected $1,000 boost.
Some taxpayers, especially those benefiting from the One Big Beautiful Bill Act's deductions, may see larger refunds.
Experts warn that larger refunds are overpayments to the Internal Revenue Service, risking financial strain from unexpected expenses.
Adjusting tax withholdings could help avoid future overpayments.

1 of 1

Story summary

Average federal tax refunds are higher this year, totaling $3,676, up from $3,324 last year.
The increase is smaller than the White House's previously projected $1,000 boost.
Some taxpayers, especially those benefiting from the One Big Beautiful Bill Act's deductions, may see larger refunds.
Experts warn that larger refunds are overpayments to the Internal Revenue Service, risking financial strain from unexpected expenses.
Adjusting tax withholdings could help avoid future overpayments.