Extra $350 Refunds Expected as IRS Tax Deadline Hits

As Americans rush to file their taxes ahead of today's IRS deadline, new data show that refunds are coming in larger than last year, although the amounts are still far smaller than many were led to expect.

So far this tax season, the average refund is about $350 higher than in 2025, even as the White House and administration officials previously projected refunds could rise by $1,000 to $2,000 as a result of recent tax changes.

Why It Matters

For millions of Americans, tax refunds function as a once‑a‑year financial reset, and the money is used to pay down debt, catch up on rent, or pad emergency savings. That makes the size of this year's refunds especially important as households continue to grapple with elevated costs for food, housing, and utilities.

While the average refund is about $350 higher than last year, that increase falls well short of the $1,000 to $2,000 boost the administration had suggested many taxpayers could see, creating a growing disconnect between expectations and reality. For some filers, that gap may feel significant particularly after budgeting around earlier projections.

What To Know

By early April, the average tax refund stood at $3,462, an 11.1 percent increase from the same point last year, the IRS reported. While that represents a meaningful boost for households, it falls well short of earlier White House promises that this would be the "largest tax refund season in U.S. history."

The increase in refunds is widely attributed to provisions in the administration's major tax and spending overhaul, which expanded deductions tied to tipped income, overtime pay, and benefits for older Americans.

Administration officials previously suggested those changes could push refunds $1,000 or more above last year's levels, and in some cases as high as $2,000.

Instead, current IRS figures show a much smaller average gain. While many filers are still receiving thousands of dollars back, others say their refunds feel only marginally different from prior years.

"The administration’s talking point now is the 24% improvement over the 4-year Biden average. That’s technically accurate," Michael Ryan, a finance expert and the founder of MichaelRyanMoney.com, told Newsweek. "It’s also completely beside the point for someone opening a $350 refund check instead of the $1,500+ they were told to expect."

One reason refunds appear lower than expected is that some of the new tax relief shows up when people file, not in refund checks. IRS refund data does not capture how much less taxpayers may owe overall compared with last year. In other words, some Americans are benefiting from lower tax bills without receiving money back.

"It’s yet another lesson for taxpayers in the future: regardless of headlines, each tax situation is unique, and you should wait to see what the actual amount is before planning for a larger refund that may never come," Alex Beene, a financial literacy instructor for the University of Tennessee at Martin, told Newsweek.

Despite the gap between projections and reality, refunds are still higher than in 2025, offering some relief after years of inflation and higher household costs.

However, for many taxpayers, the boost won't make up for rising expenses, Ryan said. "A $335 refund doesn’t offset $1,440 in extra gas costs and rising food prices," Ryan said.

"The new deductions are real. Tips, overtime, auto loan interest. But claiming them required documentation most workers didn’t know to collect, and the SALT expansion required itemizing, which most people don’t do."

Tax Deadline Is Today

Wednesday, April 15 is the deadline for most Americans to file their federal tax returns or request an extension.

If you haven't already, you should file electronically if possible. E‑filing is faster and reduces the risk of errors.

The IRS typically issues refunds within 21 days for electronic returns, especially when direct deposit is used. Paper filings can take significantly longer.

And if you owe money, taxes owed are also due today. Penalties and interest may apply for late payment, even if you file an extension.

Taxpayers who aren't ready to file can request an automatic six‑month extension, pushing the filing deadline to October 15.

What Happens Next

However, an extension to file is not an extension to pay. Any estimated taxes owed must still be paid by today to avoid penalties and interest.

Extensions can be requested online through the IRS website or by submitting Form 4868, either electronically or by mail.

But for those who are receiving their refunds now, a major surge in money is not necessarily in store.

"The ‘no tax on tips' and ‘no tax on Social Security' talk created false expectations," Kevin Thompson, the CEO of 9i Capital Group and the host of the 9innings podcast, told Newsweek. "Now people are seeing smaller refunds or even owing."

Newsweek's reporters and editors used Martyn, our Al assistant, to help produce this story. Learn more about Martyn.

2026 NEWSWEEK DIGITAL LLC.

This story was originally published April 15, 2026 at 11:53 AM.