2026 Tax Refund Guide: What to Expect, Eligibility & Key Updates
The average tax refund last year was $3,167. This year, experts believe that figure could be about $1,000 higher, largely due to changes in tax law. In total, more than 165 million individual tax returns were filed last year, and nearly all of them — roughly 94 percent — were submitted electronically.
The process will likely move smoothly for most people with basic tax returns. However, this filing season may come with some challenges. Thousands of IRS employees have left since the Trump administration began. The national taxpayer advocate has warned that the 2026 tax season could be difficult, especially for those who experience filing problems or require additional assistance.
Last year, buyout offers to IRS employees were not allowed until after the filing deadline. Since then, many customer service representatives have departed. The IRS started 2025 with approximately 102,000 employees but ended the year with about 74,000 after layoffs and workforce reductions introduced by the Department of Government Efficiency. With fewer staff members available, taxpayers who need help may face delays.
When to Expect Your Tax Refund
If you e-file your return, the IRS states that you can expect your refund within 21 days or less. Choosing direct deposit may speed up the process even further. Paper returns typically take four weeks or more. If your return requires corrections or amendments, the waiting period could be longer.
The “Where’s My Refund?” tool is updated once every 24 hours, usually overnight. To check your refund status, you will need your Social Security number or Individual Taxpayer Identification Number (ITIN). You can monitor your refund through the “Where’s My Refund?” tool on IRS.gov, the IRS2Go mobile app, or your online Individual Account.
How Tax Refunds Work
A tax refund occurs when you have paid more in taxes during the year than you actually owed. This often happens when too much money has been withheld from your paycheck. Even if you did not overpay, you may still receive money back if you qualify for refundable tax credits such as the Earned Income Tax Credit (EITC) or the Child Tax Credit.
You must file a tax return to receive any refund. If you are owed money, you have up to three years to claim it.
Who Qualifies for the Earned Income Tax Credit (EITC)
The Earned Income Tax Credit is designed to assist low- and moderate-income workers. To qualify, your investment income must be less than $11,950, and your earned income must meet specific limits.
For example, if you are single with no children, your income must be $19,104 or less. If you are married filing jointly with three or more children, your income must be below $68,675. The exact credit amount depends on your income, filing status, and number of children. The IRS provides an online EITC Assistant tool to help determine eligibility.
Who Qualifies for the Child Tax Credit
If you have children, you may qualify for the Child Tax Credit worth up to $2,200 per child.
To qualify, the child must:
- Have a valid Social Security number
- Be under age 17 at the end of 2025
- Be your child (including adopted), stepchild, foster child, sibling, stepsibling, or a descendant such as a grandchild
- Not provide more than half of their own financial support during the year
- Live with you for more than half of the tax year
- Be claimed as a dependent on your tax return
- Not file a joint return unless it was only to claim a refund
- Be a U.S. citizen, national, or resident alien
You may claim the full credit if your annual income does not exceed $200,000, or $400,000 for married couples filing jointly.
Additional Child Tax Credit (ACTC)
If you qualify for the Child Tax Credit but owe little or no federal income tax, you may also qualify for the Additional Child Tax Credit. This credit can provide up to $1,700 per child. To be eligible, you must have earned at least $2,500 during the year.
When Will Tax Refunds Arrive?
The IRS expects most refunds related to the Earned Income Tax Credit, Child Tax Credit, and Additional Child Tax Credit to reach taxpayers by March 2 if they selected direct deposit. Some individuals may receive their refunds earlier depending on their financial institution.
What’s New in the 2026 Tax Filing Season?
This filing season includes one major change. Most taxpayers must now provide their bank routing and account numbers if they want refunds deposited directly into their accounts. The IRS has been gradually eliminating paper checks as part of its transition toward electronic payments. As a result, more refunds are now issued through direct deposit.
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