Average 2026 Tax Refunds Up About $350 as IRS Chief Faces Senate Questions on Trump Tax Law and Data Sharing with ICE

On Tax Day, April 15, 2026, IRS CEO Frank Bisignano testified before the Senate Finance Committee as new filings rolled in under the Republican One Big Beautiful Bill Act. IRS data show the average federal refund so far this season is about $3,462 — roughly an 11% increase, or about $350, from the same point last year — a rise analysts largely attribute to the law’s new deductions, including elimination of federal income tax on tips and an overtime deduction. The Treasury says more than 53 million filers have used at least one new break: roughly 6 million claimed the no‑tax‑on‑tips provision, 21 million used the overtime deduction and about 30 million seniors took the enhanced deduction.

That headline increase masks an uneven distribution of benefits. Research indicates the overtime deduction primarily helps hourly workers — an estimated 17 million filers could benefit, with an average tax cut of more than $1,400 — yet higher‑income filers have been disproportionately likely to report significantly larger refunds, helped in part by a raised SALT cap to $40,000. Analysts and firms that produced more optimistic early projections have clarified their caveats: some forecasts were hypothetical maximums assuming every filer received a refund and hundreds of billions in retroactive relief also lowered tax bills for people who don’t get refunds. Public sentiment is mixed; a Bipartisan Policy Center survey found 62% of Americans think the changes either harmed them or made no difference, and many households say any refund bump is offset by higher living costs — national gasoline prices and other inflationary pressures have in some cases eroded the practical benefit of the larger refunds.

Coverage of the law’s effects has shifted since early spring. The White House initially touted an average refund increase of $1,000 or more, a framing picked up by some outlets; subsequent reporting from NPR, PBS and CBS, however, drove a recalibration, showing actual refund averages closer to the $350 figure and noting Treasury’s later emphasis on a 24% increase versus the four‑year pre‑Trump average rather than the $1,000 claim. Those outlets also highlighted that much of the relief shows up as lower overall tax bills or benefits filers who otherwise would have owed money at filing, factors that don’t always appear in headline refund averages.

Bisignano’s Senate appearance also spotlighted controversies beyond refund math. Democratic senators pressed him over an IRS information‑sharing agreement with DHS that aided ICE, amid reporting that the IRS erroneously disclosed taxpayer information about 42,695 instances in potential violation of Code section 6103. Lawmakers and tax‑assistance advocates also raised concerns about a 27% reduction in the IRS workforce over the past year, which the agency says has contributed to processing backlogs and reduced in‑person assistance — factors that could delay refunds and complicate implementation. Social media reflected the partisan split: some Republicans celebrated the higher average refunds and the law’s ability to let Americans “keep more” of their pay, while Democrats and critics argued the changes favor wealthier filers and that many households see little net benefit after inflation and withholding issues.