IRS Reports Higher Refunds Amid Filing Slowdown

The IRS reported through Feb. 20, 2026 that 41.9 million individual returns have been filed, 1.9% fewer than the same point in 2025, while average refunds rose 10.2% to $3,804. The increase stems from OBBBA changes—including a temporary $6,000 deduction for taxpayers 65 and older—while staffing cuts, processing backlogs, and planned AI-driven modernization prompt warnings to double-check filings.