[URL unfurl="true"]https://finance.yahoo.com/personal-finance/taxes/article/average-tax-refund-nears-3800-irs-says-191959280.html[/URL]
The average federal tax refund reached nearly $3,800, an 8.8% jump over the same week last year, according to [Internal Revenue Service data]('https://www.irs.gov/newsroom/filing-season-statistics-for-week-ending-feb-27-2026'). The government has processed more than 36 million refunds so far this season, totalling over $136 billion.
[SIZE=6]Refunds were [projected to be higher]('https://finance.yahoo.com/personal-finance/taxes/article/your-tax-refund-may-be-bigger-this-year-heres-why-152025333.html') this year thanks to provisions in the One Big Beautiful Bill, which makes new tax breaks available to millions of Americans[/SIZE]. Major changes include new deductions on [overtime pay]('https://finance.yahoo.com/personal-finance/taxes/article/no-tax-on-overtime-184850223.html') and [tips]('https://finance.yahoo.com/personal-finance/taxes/article/are-tips-taxable-heres-how-the-new-no-tax-on-tips-deduction-works-193914974.html'), a vastly expanded [deduction for state and local taxes]('https://finance.yahoo.com/personal-finance/taxes/article/salt-deduction-160737863.html'), and a bigger standard deduction — $31,500 for a married couple.
The vast majority of Americans claim the [standard deduction instead of itemizing deductions]('https://finance.yahoo.com/personal-finance/taxes/article/standard-deduction-vs-itemized-210300533.html'). But it’s worth revisiting whether you’d benefit more from itemizing, especially if you’re a homeowner.
Those who bought in recent years typically have higher mortgage rates — they’ve averaged around 6.69% in the last two years, according to Freddie Mac data. And you pay more in interest in the first years of a mortgage. All that can make the [mortgage interest deduction]('https://finance.yahoo.com/personal-finance/taxes/article/mortgage-interest-deduction-180853056.html') extremely valuable. If you live in a high-tax state, combine that with the jumbo-sized SALT deduction, and those benefits together could easily add up to more than the standard deduction.