Millions of Americans Could Receive an Additional $775 Tax Refund, According to the IRS Director

The tax season in the United States is bringing a positive surprise for millions of taxpayers.

According to data from the Internal Revenue Service (IRS), many households could receive higher tax refunds this year, driven by new tax deductions included in recent legislation.

Why it matters: for millions of American households, a tax refund represents an important financial boost that can help pay debts, cover expenses, or strengthen the family budget.

According to the IRS director, Frank Bisignano, during a hearing before the U.S. House Committee on Ways and Means, taxpayers who claimed at least one of the new deductions are receiving an average additional $775 in their refund.

In addition, the average tax refund has already reached $3,804, about 10% higher than at the same point in last year’s tax season, even before the full impact of the new deductions is reflected.

Why some taxpayers will receive an additional $775 refund

The increase in refunds is linked to the implementation of new tax deductions included in the Working Families Tax Cuts Act (WFTC), recently signed by Donald Trump.

These provisions are intended to reduce the tax burden on workers and increase the amount of money they receive when filing their tax returns.

$775 IRS tax refund increase – PHOTO: EFE

During the congressional hearing, Bisignano indicated that more than four out of ten tax returns filed so far include at least one of these new deductions.

So far, around 55 million tax returns have already been filed, meaning millions of taxpayers are already taking advantage of the new tax benefits.

The IRS director noted that taxpayers who used at least one of these deductions have received an average increase of $775 in their refund, a figure that could continue to grow as the tax season progresses.

Tax changes increasing refunds

The new tax legislation introduced several changes that can increase the amount of money taxpayers receive when filing their taxes.

Among the most notable provisions are measures aimed at reducing taxes on certain types of income.

The law includes:

Elimination of taxes on tips

Elimination of taxes on overtime pay

Deduction for interest on auto loans for cars manufactured in the United States

New tax deduction for seniors

$775 IRS tax refund increase – PHOTO: Shutterstock

According to the IRS, these provisions are intended to provide tax relief for working families.

Bisignano explained that one of the most widely used provisions so far is the $12,500 deduction tied to overtime pay.

Additionally, there is a $6,000 tax bonus for seniors, which has contributed to some of the largest increases in individual refunds.

Who benefits most from these tax deductions?

According to the IRS, households benefiting most from the new tax changes are those with adjusted gross incomes under $100,000.

This means the primary impact of the new deductions is concentrated among middle- and lower-income taxpayers.

The goal of the law is to increase disposable income for these families by directly reducing their tax burden.

Deductions related to tips, overtime income, and certain financial expenses reduce the total amount of taxes owed, which translates into larger refunds when taxpayers file their returns.

Don’t earn enough to file? You may still be eligible for tax credits that result in a refund from the #IRS —but the only way to get a refund is to file a tax return. Consider Free File—it’s safe, easy and free. https://t.co/3byJqk9fiF pic.twitter.com/e1AzbpeBHu

— IRSnews (@IRSnews) March 9, 2026

Refunds in 2026 could increase even more

The IRS estimates that the full impact of the new deductions has not yet been fully reflected in current refunds.

Bisignano said that if the trend continues, the average increase in refunds for eligible taxpayers could reach up to $1,000 by the end of the tax season.

This increase will depend on how many taxpayers claim the new deductions and how the benefits are distributed among different income groups.

Despite changes in tax rules and staff reductions within the IRS, the agency’s director said the tax season is progressing without major disruptions.

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What comes next for 2026 tax refunds

As the filing season continues, millions of additional taxpayers will submit their returns and may see the new tax benefits reflected in their refunds.

The Internal Revenue Service continues to process returns and apply the deductions established by the new tax law, which could further increase the average refund amount.

For many households, these payments represent an important financial support throughout the year, especially at a time when the cost of living remains a key factor in family financial planning.