As Tax Day approaches, there’s good news. The average tax refund amount is up 11 percent this year, giving individuals and families a needed financial boost. The Working Families Tax Cuts, also known as the One Big Beautiful Bill Act (OBBBA), are delivering relief for American households, just when they need it.

Bigger refunds help cushion the temporary gas price spikes from the Iran conflict. Importantly, long after energy prices recede, the many tax breaks for households and small businesses codified by the OBBBA will remain.

According to the latest data from the Internal Revenue Service (IRS), $221.7 billion has been refunded to taxpayers for the 2025 tax filing year, a 13.6 percent increase from 2024. The average refund amount this tax season is a little over $3,500 compared to over $3,100 for 2024 returns. Uncle Sam has handed over 1.4 million more tax refunds this year than last year.

Before critics minimize the $400 increase in average tax refunds, let’s remember that 37 percent of Americans do not have enough cash to cover a $400 unexpected expense. Increased tax refunds are a cash infusion for individuals and families that provide extra padding to household budgets and savings accounts. A plurality of consumers (40 percent) plan to save or invest their tax refunds, according to Experian’s recent survey. Another 20 percent of consumers plan to pay down debt. Splurge........

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