This year’s tax season is expected to bring bigger refunds for many Americans. Each household can expect an average of $1000 more in refunds, compared to last year. For those wondering, “Where is my tax refund?”, let’s discuss why your refund may go up this year, and when you can expect it to roll out.
Why The Low Taxes And Where Is My Tax Refund?
The new taxation laws are part of the One, Big, Beautiful Bill Act (OBBBA), passed in 2025. The act has made several changes to the tax system, reducing the amount of tax people owe.
Firstly, the standard deduction has increased. This means that the amount of money you don’t have to pay taxes on has gone up. Additional tax benefits have also been added, such as deductions for the elderly, tip income, and overtime pay. Moreover, the cap on state and local tax deductions (SALT) was raised massively. This is especially helpful for people in high-tax states.
A large number of taxpayers did not update their paycheck withholdings to reflect the new taxation rules. They paid more tax during the year than they actually owed under the new law. That extra money gets returned to them as a larger refund when they file their income taxes.
The IRS started the 2026 tax filing season on Jan. 26, 2026. If you file electronically (e-file) and choose direct deposit, most refunds are typically processed and sent in about 21 days. However, if you file on paper, the refund process could take up to six weeks or so.
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If you are curious about your refund, you can use the IRS’s “Where’s My Refund” tool after your filing has been accepted. The new laws are expected to raise sentiment of American tax filers, while macroeconomic worries continue to worry investors.