Millions of Americans who depend on their tax refund each year are being advised to prepare for major changes in the 2026 tax filing season. The federal government expects refunds to be significantly higher on average, but the way people receive that money is changing fast. For many taxpayers, the familiar paper check in the mailbox is about to become a thing of the past.
IRS Predicts Bigger Refunds in 2026
The Internal Revenue Service has announced that average tax refunds in the 2026 filing season are expected to be around 30 percent higher than in recent years. The agency opened the filing season on January 26 and anticipates receiving roughly 164 million individual tax returns before the April 15 deadline. While refund amounts will still depend on personal income, credits, and deductions, new tax rules are playing a big role in boosting expected totals.
Paper Refund Checks Are Being Phased Out
One of the biggest changes this year is how refunds are delivered. The IRS has begun phasing out paper refund checks following an executive order signed by Donald Trump. Under the new policy, most taxpayers must provide bank account and routing numbers so refunds can be sent by direct deposit. The IRS says paper checks are slower, more expensive, and more vulnerable to theft or fraud, especially after mail-related issues increased during the pandemic.
Direct Deposit Means Faster Refunds
Direct deposit is now being promoted as the standard way to receive a refund. According to the IRS, taxpayers who file electronically and choose direct deposit usually receive their money in less than 21 days. For households juggling rent, utility bills, or credit card payments, this faster turnaround can make a meaningful difference compared to waiting weeks for a mailed check.
New Tax Deductions Are Boosting Refunds
Several new deductions introduced under recent tax legislation are also affecting refund amounts. These include expanded charitable deductions for people who do not itemize, new deductions for tip income and overtime pay, and enhanced deductions for seniors aged 65 and older. Additional changes allow interest on certain auto loans to be deducted and restore the deductibility of private mortgage insurance in future filings. Together, these updates help explain why refunds may be larger for many filers in 2026.
Preparing for the 2026 Filing Season
Taxpayers are encouraged to gather bank details before filing and double-check that their information is accurate. Keeping records of donations, income, loan interest, and insurance payments can also help ensure refunds are calculated correctly. As the IRS continues its shift toward digital filing, electronic returns and direct deposit are becoming the safest and fastest options.
A Turning Point for Tax Refunds
With the United States marking major historical anniversaries and electronic filing reaching its 40th year, the 2026 tax season represents a lasting shift in how refunds are handled. Those who adapt early are more likely to receive their refunds quickly, while those who delay may face unnecessary setbacks.
Disclaimer:
This article is for informational purposes only and is based on publicly available IRS announcements as of the 2026 tax filing season. Tax laws, refund amounts, and payment methods may change based on official guidance. Always consult the Internal Revenue Service or a qualified tax professional for the most accurate and personalized information.
