Official VisaVerge Logo Official VisaVerge Logo
  • Home
  • Airlines
  • H1B
  • Immigration
    • Knowledge
    • Questions
    • Documentation
  • News
  • Visa
    • Canada
    • F1Visa
    • Passport
    • Green Card
    • H1B
    • OPT
    • PERM
    • Travel
    • Travel Requirements
    • Visa Requirements
  • USCIS
  • Questions
    • Australia Immigration
    • Green Card
    • H1B
    • Immigration
    • Passport
    • PERM
    • UK Immigration
    • USCIS
    • Legal
    • India
    • NRI
  • Guides
    • Taxes
    • Legal
  • Tools
    • H-1B Maxout Calculator Online
    • REAL ID Requirements Checker tool
    • ROTH IRA Calculator Online
    • TSA Acceptable ID Checker Online Tool
    • H-1B Registration Checklist
    • Schengen Short-Stay Visa Calculator
    • H-1B Cost Calculator Online
    • USA Merit Based Points Calculator – Proposed
    • Canada Express Entry Points Calculator
    • New Zealand’s Skilled Migrant Points Calculator
    • Resources Hub
    • Visa Photo Requirements Checker Online
    • I-94 Expiration Calculator Online
    • CSPA Age-Out Calculator Online
    • OPT Timeline Calculator Online
    • B1/B2 Tourist Visa Stay Calculator online
  • Schengen
VisaVergeVisaVerge
Search
Follow US
  • Home
  • Airlines
  • H1B
  • Immigration
  • News
  • Visa
  • USCIS
  • Questions
  • Guides
  • Tools
  • Schengen
© 2025 VisaVerge Network. All Rights Reserved.
Knowledge

Average Tax Refund Rises Nearly 11% as PATH Act and One Big Beautiful Bill Act Take Effect

The upcoming federal tax deadline is April 15, 2026. Early IRS data shows an average refund increase of 10.9%, though PATH Act credits remain held until mid-February. Filers are encouraged to use e-file and direct deposit for faster processing. Remember that while filing extensions are available until October, any taxes owed must still be paid by the April deadline to avoid interest.

Last updated: February 16, 2026 9:57 pm
SHARE
Key Takeaways
→The 2026 federal tax deadline for 2025 returns is set for April 15.
→Early IRS data shows average refunds are higher compared to the previous year.
→Filers claiming EITC or ACTC face mandatory refund holds until mid-February.

(UNITED STATES) — The next major tax deadline is April 15, 2026, for most individuals filing 2025 federal returns, and missing it can trigger failure-to-file penalties, late-payment interest, and delayed refunds.

Early IRS filing-season data is already drawing attention because the Average tax refund is running higher than last year. That can be encouraging for households expecting a refund. Still, February averages often swing sharply, especially once PATH Act-held refunds start posting and more complex returns are processed.

Average Tax Refund Rises Nearly 11% as PATH Act and One Big Beautiful Bill Act Take Effect
Average Tax Refund Rises Nearly 11% as PATH Act and One Big Beautiful Bill Act Take Effect

📅 Deadline Alert: File or extend by April 15, 2026. An extension buys time to file, not time to pay. Pay what you expect to owe by April 15 to limit penalties and interest.

Deadline summary (2026 filing season for 2025 returns)

Tax event Deadline Extension available
File Form 1040 / 1040-NR (most filers) April 15, 2026 Yes, to October 15, 2026 (Form 4868)
Pay balance due (even with extension) April 15, 2026 No (interest accrues after April 15)
FBAR (FinCEN Form 114) April 15, 2026 Automatic to October 15, 2026

Disaster relief: If you live in a federally declared disaster area, the IRS may postpone filing and payment deadlines. Check IRS disaster announcements on irs.gov/newsroom.

2026 filing season key dates (PATH release, IRS update, and filing deadline)
JAN 26
Tax season start
FEB 15
PATH Act EITC/ACTC hold lifts
FEB 27
Next IRS filing season update (covering through February 20, 2026)
APR 15
Federal filing deadline
→ Important Notice
If you claim EITC or ACTC, plan your cash flow assuming your refund won’t arrive early—those refunds are legally held for additional verification. Avoid paying bills based on an ‘early refund’ expectation, and be cautious of refund-advance offers that rely on uncertain timelines.

1) Where the refund numbers stand—and why they can mislead in February

As of February 6, 2026, the IRS reported an average refund of $2,290, up 10.9% from $2,065 at the same point last year. The IRS had issued 7,403,000 refunds totaling $16.954 billion by that date.

That’s “early” in a real way. The IRS also reported 22,351,000 returns received and 20,623,000 processed as of February 6. Those counts were lower than last year at the same time.

Why the Average tax refund moves week to week:

  • Early filers skew toward simpler returns, often with wage income and direct deposit.
  • Some refundable credits are delayed by law (more below).
  • Processing lags can change the “mix” of refunds counted in a snapshot.
→ Note
A bigger refund isn’t always a ‘gain’—it can simply mean you overpaid through withholding. If you want more take-home pay during the year, update your Form W-4 after major tax-law changes and recheck your withholding after your first 2026 pay stub.

Treat the February average as a trend indicator, not a prediction of your own refund.

2) PATH Act timing: why EITC/ACTC filers often wait longer

If you claim the Earned Income Tax Credit (EITC) or Additional Child Tax Credit (ACTC), the PATH Act requires the IRS to hold refunds until mid-February. The IRS can process the return, but it cannot release the refund until the hold lifts.

This timing matters for averages. Early-season refund averages can rise later, once held EITC/ACTC refunds begin to post. It also explains why two IRS metrics can diverge:

→ Analyst Note
To speed up your refund, e-file and choose direct deposit, then double-check names, SSNs/ITINs, and every income form before you submit. If you had Marketplace coverage, file only after you have Form 1095-A—missing it often triggers manual review and delays.
Tax filing document checklist to avoid refund delays
Identity & filing basics: Social Security numbers/ITINs for all filers/dependents, government ID if needed for verification, prior-year return/AGI
Wage and income forms: W-2, 1099-NEC, 1099-K (if applicable), 1099-INT/1099-DIV, SSA-1099
Health coverage marketplace: Form 1095-A (and related premium tax credit reconciliation details)
Unemployment/other payments: Form 1099-G (if received)
Education: Form 1098-T and records of qualified expenses
Home/loan items: Form 1098 (mortgage interest) and property tax records if applicable
Banking for direct deposit: routing/account numbers
Security: IRS IP PIN (if assigned)
Credits support: childcare provider information/expenses (if claiming childcare credit), records supporting EITC/CTC eligibility
  • Returns received: the IRS has the return in its system.
  • Returns processed: the return cleared IRS checks and posted for refund or balance due.

If you claim EITC/ACTC, build in extra time for:

  • Identity and wage verification checks
  • Bank processing for direct deposit
  • Any IRS “manual review” triggers, such as mismatched Forms W-2

For immigrants and visa holders, a common slowdown is an SSN/ITIN mismatch. If a child’s SSN is new, confirm it matches the Social Security card exactly.

IRS background resources: Publication 519 (U.S. Tax Guide for Aliens) explains residency and filing rules (see irs.gov/pub/irs-pdf/p519.pdf).

3) One Big Beautiful Bill Act: why 2026 withholding can change 2027 refunds

Refunds are a reconciliation between your total tax and what you already paid through withholding and estimated payments. That’s why the One Big Beautiful Bill Act (signed mid-2025) matters for tax year 2026 (filed in 2027).

The law’s headline changes can move refunds up or down:

  • Standard deduction increase: A higher deduction can reduce taxable income. If withholding tables changed mid-year, some workers may have had less tax withheld. That can reduce refunds even if total tax is lower.
  • Child Tax Credit change: The CTC increased to $2,200 per qualifying child (up from $2,000 in prior law as described in early analyses). Eligibility rules still control who benefits.
  • New tips deduction concept: A deduction of up to $25,000 for tips was described, with MAGI limits of $150,000 (single) and $300,000 (joint) in the early summaries. Workers should keep tip records and ensure Forms W-2 match.

For 2026 planning, review your Form W-4 withholding after major life changes, including a new job, a move, or a new dependent.

4) “Average benefit” estimates don’t equal your refund

Some analysts have floated an “average increase per filer” estimate near $1,000. Figures like that can be useful for broad context, but they do not predict your refund.

Why results vary so much:

  • Higher-income households often see larger dollar changes from rate and deduction shifts.
  • Some lower earners benefit more from refundable credits than from deductions.
  • A change in withholding can shift your refund even if your total tax changes only slightly.

A refund is not a bonus. It is usually over-withholding returned to you.

5) How refund averages typically evolve after mid-February

Refund patterns often change as February progresses:

  • Early refunds tend to come from simpler wage-only returns.
  • Later refunds include more itemizers, self-employed filers, and returns with foreign reporting.
  • EITC/ACTC release timing can lift reported averages in later snapshots.

The IRS posts weekly filing-season updates. Treat one week of data as noise, not a verdict.

6) Processing speed, common delays, and immigrant-specific pitfalls

The IRS generally states that e-file with direct deposit is the fastest route, often within 21 days for many returns. Some take longer.

Common refund delays:

  • Wrong bank account number for direct deposit
  • Mismatched wages or withholding (W-2 vs return)
  • Missing Forms 1099, including gig work and interest
  • Identity verification requests

Immigrant and visa-holder reminders:

  • Your U.S. tax status depends on the Green Card Test or Substantial Presence Test. See IRS international guidance at irs.gov/individuals/international-taxpayers.
  • F-1 and J-1 students may be exempt from the substantial presence test for limited years, and may file Form 1040-NR. See Publication 519.
  • If you hold foreign financial accounts, you may need FBAR (FinCEN 114) and possibly Form 8938 (FATCA).
Filing status (living in U.S.) FBAR threshold Form 8938 (end of year) Form 8938 (any time)
Single / MFS $10,000 aggregate $50,000 $75,000
Married filing jointly $10,000 aggregate $100,000 $150,000

⚠️ Warning: Form 4868 extends filing, not payment. If you wait to pay until October, interest and penalties can continue to grow.

What to do now (before April 15)

  • File electronically and choose direct deposit.
  • Reconcile every income form before filing. Mismatches can freeze refunds.
  • If you expect EITC/ACTC, plan for a later refund timeline.
  • If you are a nonresident or dual-status filer, confirm the correct form (1040-NR vs 1040). Publication 519 helps.
  • For forms and instructions, use irs.gov/forms-pubs to avoid scam lookalikes.

⚠️ Disclaimer: This article is for informational purposes only and does not constitute tax, legal, or financial advice. Tax situations vary based on individual circumstances. Consult a qualified tax professional or CPA for guidance specific to your situation.

Learn Today
PATH Act
A law requiring the IRS to hold refunds for taxpayers claiming certain credits to help prevent fraud.
FBAR
FinCEN Form 114, used to report foreign financial accounts exceeding $10,000 at any time during the year.
Withholding
The amount of federal income tax taken out of your paycheck by your employer.
Form 1040-NR
The U.S. Income Tax Return used specifically by nonresident aliens.
VisaVerge.com
Share This Article
Facebook Pinterest Whatsapp Whatsapp Reddit Email Copy Link Print
What do you think?
Happy0
Sad0
Angry0
Embarrass0
Surprise0
Robert Pyne
ByRobert Pyne
Editor
Follow:
Robert Pyne, a Professional Writer at VisaVerge.com, brings a wealth of knowledge and a unique storytelling ability to the team. Specializing in long-form articles and in-depth analyses, Robert's writing offers comprehensive insights into various aspects of immigration and global travel. His work not only informs but also engages readers, providing them with a deeper understanding of the topics that matter most in the world of travel and immigration.
Subscribe
Login
Notify of
guest

guest

0 Comments
Inline Feedbacks
View all comments
H-1B Workforce Analysis Widget | VisaVerge
Data Analysis
U.S. Workforce Breakdown
0.44%
of U.S. jobs are H-1B

They're Taking Our Jobs?

Federal data reveals H-1B workers hold less than half a percent of American jobs. See the full breakdown.

164M Jobs 730K H-1B 91% Citizens
Read Analysis
Dual Nationals Must Use British Passport for UK Entry from 25 February
Passport

Dual Nationals Must Use British Passport for UK Entry from 25 February

March 2026 Visa Bulletin Predictions: What you need to know
USCIS

March 2026 Visa Bulletin Predictions: What you need to know

Brazil Public Holidays 2026 Complete List
Guides

Brazil Public Holidays 2026 Complete List

How long it takes to get your REAL ID card in the mail from the DMV
Airlines

How long it takes to get your REAL ID card in the mail from the DMV

Reddit, Meta and Google Hand Over Anti-ICE Users’ Data to DHS
News

Reddit, Meta and Google Hand Over Anti-ICE Users’ Data to DHS

Dutch Tax Unrealized Gains Box 3 Actual Return Tax Law January 1, 2028
Digital Nomads

Dutch Tax Unrealized Gains Box 3 Actual Return Tax Law January 1, 2028

Guide to Reaching Air Canada Customer Service with Ease
Airlines

Guide to Reaching Air Canada Customer Service with Ease

Armenia Expands Temporary Visa-Free Entry Policy for Indians with 180 Days and Residence Permits
DUBAI

Armenia Expands Temporary Visa-Free Entry Policy for Indians with 180 Days and Residence Permits

Year-End Financial Planning Widgets | VisaVerge
Tax Strategy Tool
Backdoor Roth IRA Calculator

High Earner? Use the Backdoor Strategy

Income too high for direct Roth contributions? Calculate your backdoor Roth IRA conversion and maximize tax-free retirement growth.

Contribute before Dec 31 for 2025 tax year
Calculate Now
Retirement Planning
Roth IRA Calculator

Plan Your Tax-Free Retirement

See how your Roth IRA contributions can grow tax-free over time and estimate your retirement savings.

  • 2025 contribution limits: $7,000 ($8,000 if 50+)
  • Tax-free qualified withdrawals
  • No required minimum distributions
Estimate Growth
For Immigrants & Expats
Global 401(k) Calculator

Compare US & International Retirement Systems

Working in the US on a visa? Compare your 401(k) savings with retirement systems in your home country.

India UK Canada Australia Germany +More
Compare Systems

You Might Also Like

Understanding Dual-Status Filing for H1B Visa Holders: How Does It Impact Taxes?
H1B

Understanding Dual-Status Filing for H1B Visa Holders: How Does It Impact Taxes?

By
Visa Verge
The Brexit implications on Northern Ireland’s post-Brexit economy
Knowledge

The Brexit implications on Northern Ireland’s post-Brexit economy

By
Robert Pyne
2025 Delaware Tax Benefits and Credits Available to Immigrants
Taxes

2025 Delaware Tax Benefits and Credits Available to Immigrants

By
Robert Pyne
Is the Form I-485 Filing Fee Different for Children or Specific Groups?
Documentation

Is the Form I-485 Filing Fee Different for Children or Specific Groups?

By
Oliver Mercer
Show More
Official VisaVerge Logo Official VisaVerge Logo
Facebook Twitter Youtube Rss Instagram Android

About US


At VisaVerge, we understand that the journey of immigration and travel is more than just a process; it’s a deeply personal experience that shapes futures and fulfills dreams. Our mission is to demystify the intricacies of immigration laws, visa procedures, and travel information, making them accessible and understandable for everyone.

Trending
  • Canada
  • F1Visa
  • Guides
  • Legal
  • NRI
  • Questions
  • Situations
  • USCIS
Useful Links
  • History
  • USA 2026 Federal Holidays
  • UK Bank Holidays 2026
  • LinkInBio
  • My Saves
  • Resources Hub
  • Contact USCIS
web-app-manifest-512x512 web-app-manifest-512x512

2026 © VisaVerge. All Rights Reserved.

2026 All Rights Reserved by Marne Media LLP
  • About US
  • Community Guidelines
  • Contact US
  • Cookie Policy
  • Disclaimer
  • Ethics Statement
  • Privacy Policy
  • Terms and Conditions
wpDiscuz
Welcome Back!

Sign in to your account

Username or Email Address
Password

Lost your password?