Millions of Americans Getting an Extra $775 Refund from IRS

It's officially tax season in the United States, and as Americans begin filing their taxes, the Internal Revenue Service (IRS) has indicated that millions across the country are receiving significant increases to their tax return.

This marks the first tax season after a number of new tax deductions were created by the One, Big, Beautiful Bill Act (OBBB), and IRS CEO Frank Bisignano has told lawmakers that Americans are already taking advantage of these new deductions.

IRS Expects 'Gigantic' Tax Refunds

Following these recent tax changes, the IRS expects some Americans to receive significantly larger tax refunds this tax season.

Treasury Secretary Scott Bessent, who also served as the acting director of the Internal Revenue Service (IRS), has described the expected refunds as “gigantic” and “very large” on separate occasions.

Additionally, the White House has cited recent research from the financial services firm Piper Sandler indicating that the refund check could increase by $1,000 compared to the 2025 filing season.

Millions of Americans Take Advantage

It sounds like Americans are already taking advantage of the new tax deductions.

During a House Ways and Means Committee hearing this week, IRS CEO Frank Bisignano told lawmakers that more than four in 10 of the roughly 55 million tax returns filed so far have included at least one of the several new deductions.

That means that more than 22 million Americans have been able to use a tax deduction this tax season that did not exist last year.

Extra $750 Refund

According to the IRS, refunds are already running higher this year after the new tax deductions, with the average refund reaching $3,804, which is about 10 percent higher than the average return at this time last year.

Among the millions of households and individuals that are able to claim these deductions, their tax returns are expected to increase by several hundred dollars.

Those who claim at least one of these deductions have seen an extra $775 refund on their tax return on average, Bisignano said.

Not Everyone Qualifies

It's worth noting, however, that not everyone will qualify for these new tax deductions, and some experts have found that tax returns for many have been smaller than promised.

According to data compiled by the Center for American Progress (CAP), the average tax refund for Americans will only increase by only $331 to $748, and most Americans who make less than $100,000 a year won’t see an increased tax refund at all.

“Like the Big Beautiful Bill (BBB) in general, the vast majority of refund dollars will go to high-income Americans. Fewer than half of American taxpayers making less than $100,000 will receive an increased tax refund this year, and their refund check will only be $208 larger than previously. Meanwhile, nearly all Americans making more than $200,000 will see an increased refund, and theirs will average over $2,000 more than last year,” the CAB writes.

So, it's important to keep that in mind and keep your expectations realistic when filing your taxes.