IRS Issues $296 Billion in 2026 Refunds, Up 17% on New Tax Breaks
Updated
Updated · Fox News · Sep 3
IRS Issues $296 Billion in 2026 Refunds, Up 17% on New Tax Breaks
3 articles · Updated · Fox News · Sep 3
Summary
$296 billion in tax refunds went out during the 2026 filing season, with the IRS processing more than 8 million additional refunds, according to an Aug. 10 GAO report.
The GAO said the 17% year-on-year increase—$43 billion more than last year—was driven in part by new deductions under Trump tax changes, including breaks for qualified tips and overtime pay.
Average refunds rose by $333, adding cash to households as the administration also promotes business incentives such as 100% bonus depreciation, expanded Section 179 and immediate R&D expensing.
Those provisions are being cast as evidence of broader economic momentum, with the tax overhaul aimed at spurring business investment, hiring and domestic production.