Summary
This tax season, the average refund for individual taxpayers in the U.S. has increased by 11.1 percent to $3,462, according to IRS data. The increase is linked to President Donald Trump’s recent tax and spending law that lowered taxes on some incomes and expanded tax credits.
Key Facts
- The IRS reported an average tax refund of $3,462 as of April 3, up from $3,116 last year.
- The total refunds issued so far amount to $241.7 billion, a 14.5 percent rise from the previous year.
- Over 53 million taxpayers claimed at least one tax cut from President Trump’s new law.
- The IRS has processed about 99.8 million individual tax returns this year, which is around 60 percent of the total expected.
- Earlier predictions estimated refunds could rise by $1,000 or more on average; however, the current average refund is below the highest estimates.
- Experts warn that higher gas prices caused by the Iran war could reduce the extra money households gain from bigger refunds.
- Stanford economists estimate households might pay an extra $740 in gas costs this year due to disruptions in oil supply through the Hormuz Strait.
