Tax refunds are big this year, IRS data show. Here’s how big.

The number of tax returns the IRS has received so far this tax season is down from last year, but refunds are up double digits, IRS data show.

The average refund through Feb. 6 was $2,290, up nearly 11% from $2,065 at the same time in 2025 while total returns received fell 5.2%. The IRS noted refund numbers should rise further, too, as refunds claiming the Earned Income Tax Credit (EITC) or the Additional Child Tax Credit (ACTC) are required by law to be held until Feb. 15.

These “refund numbers do not include millions of EITC and ACTC refunds to these taxpayers,” the agency said in its release. “This means the refund numbers expected to be released Feb. 27, for refunds processed through Feb. 20, are expected to be higher.”

That should be encouraging news to Americans who are struggling under the weight of elevated prices and a slowing job market, analysts said.

“Higher refunds should be a tailwind for consumers, particularly lower income consumers who use tax refunds for debt paydown and big-ticket purchases,” said Mihir Bhatia, analyst at Bank of America.

“Combining direct deposit with electronic filing is the fastest way to receive your refund,” the IRS said. Most refunds are issued in less than 21 days for taxpayers who filed a flawless return electronically and chose direct deposit.

Nine out of 10 taxpayers already receive their tax refunds by direct deposit, but to boost that closer to 100%, the IRS began phasing out paper checks last September.

“Paper checks are over 16 times more likely to be lost, stolen, altered, or delayed than electronic payments,” the IRS said. “Direct deposit also avoids the possibility that a refund check could be returned to the IRS as undeliverable.”

Through the IRS “Where’s My Refund” tool, you can track when the IRS received your tax return, when it approved a refund and when it issued the refund. The money should land in your account within five days from the date the IRS approves your refund.

If you mailed a paper return and expect a refund, it could take four weeks or more to process your return, the IRS said.

Since refunds for Americans who claimed the EITC/ACTC can’t be released until mid-February for early filers, those taxpayers may have to wait until around March 3 to see their refunds in their bank accounts or on debit cards, if they chose direct deposit and there are no issues with the tax return.

If you don’t have a bank account, find one through the FDIC website or the National Credit Union Administration using their Credit Union Locator Tool. Usually, people can open a bank account pretty quickly. You can also ask your tax preparer if they offer other electronic payment options.

Otherwise, you might be able to deposit your refund onto a reloadable prepaid debit card or mobile app. Many reloadable prepaid cards and mobile apps have routing and account numbers, which may be different from the card number. Check with your financial institution to make sure your card or app can receive the deposit and double-check the routing and account numbers.

Along with that big check comes big responsibility, so make sure not to spend it all away, financial experts said. Here are some ideas:

• Since refunds are expected to be larger than usual, splitting a refund can be a convenient way to manage your money. You can split the refund in any proportion you want, sending some to an account for immediate use and some for future savings, in up to three different accounts with U.S. financial institutions, reloadable prepaid debit cards, or mobile apps.  You can use your tax software to do it electronically or use IRS Form 8888, Allocation of Refund if you file a paper return.

• Plan how to use the refund before receiving it. This “reduces overspending risk by assigning the refund a job in advance — debt payoff, emergency savings, or essential expenses,” said Paul Ricci, chief executive of personal loans site Best Egg.

• Put debt reduction and financial health ahead of lifestyle upgrades. “Applying refunds toward high-interest balances can reduce financial stress and improve credit utilization,” Ricci said. “Prioritizing emergency savings – 3 to 6 months of expenses — helps prevent future reliance on credit when unexpected costs arise.”

Medora Lee is a money, markets, and personal finance reporter at USA TODAY. You can reach her at mjlee@usatoday.com and subscribe to our free Daily Money newsletter for personal finance tips and business news every Monday through Friday.

This article originally appeared on USA TODAY: Tax refunds are forecast to be big. Early IRS data show it’s true