All articles tagged with #tax refunds
Goldman Sachs economists say the strong consumer boost from tax refunds in Q2 may be short‑lived, projecting real consumer spending growth slow to about 1–1.5% in the second half as real cash flow stagnates, even as GDP rose 1.5% in Q2 and retailer demand showed broad strength. The bank notes Q2 sales gains were helped by refunds and signals from retailers will be tested in upcoming earnings from Home Depot, Lowe's, Walmart and Target.
A federal ruling could entitle certain taxpayers to refunds of penalties and interest charged during COVID-era deadline extensions. To claim, file a Form 843 by July 10, 2026; eligibility covers penalties or interest paid or owed during Jan. 20, 2020–July 10, 2023 (with possible extensions to 2019–2022). If approved, you may receive a refund or have your balance reduced; if denied you can protest or sue after six months. An online Form 843 option has been available since July 1, 2026, and you can also file a protective claim if needed.
Treasury-related remarks from Scott Bessent urge workers to review and adjust their tax withholding to automatically increase take-home pay on a weekly or monthly basis, leveraging the Working Families Tax Cuts. The White House notes an improving refunds season (avg refunds over $3,400) with millions claiming deductions like No Tax on Tips, No Tax on Overtime, and senior benefits. For those with extra cash, the piece recommends deploying it prudently: invest in broad-market index funds (e.g., S&P 500), use micro-investing apps like Acorns, explore real estate crowdfunding (Mogul), and park funds in high-yield cash accounts (Wealthfront) with strong APYs and FDIC protection to grow wealth over time.
The IRS reports the average 2026 tax refund is $3,462, up 11% from 2025, helped by new deductions from the One Big Beautiful Bill Act; about 70 million filers have already received refunds, with many using the money to cut debt or save, while higher gas prices may influence overall spending.
The IRS reports that average tax refunds rose this year to about $3,462 through April 3, an 11% increase driven by retroactive Trump-era cuts. While the bump aligns with Republican hopes, it’s unlikely to deliver a decisive political advantage in the upcoming midterms, and the White House warns the impact on voters may be limited.
Stanford economists warn that higher oil and gasoline costs could largely offset the extra tax refunds Americans are set to receive this year. In a scenario where crude prices spike (with disruption to the Strait of Hormuz) but retreat later, U.S. households could spend about $740 more on gas this year, roughly canceling out the projected $360–$748 in additional refunds from last year’s tax changes. The result is a net drag on spending growth and inflation, with big variation by household — non-drivers and EV owners face less pain while long commuters face higher costs — making the outlook uncertain and tempering the hoped-for fiscal tailwind.
Americans are receiving larger federal tax refunds this year (average about $3,742, roughly 10.6% higher than last year), which typically boosts spending. But the Iran conflict is driving up oil and gas prices, raising costs for commuting, groceries, and shipping, potentially lifting inflation and mortgage rates and limiting the discretionary boost from refunds.
Cox Automotive's Manheim Used Vehicle Value Index rose 4% year over year in February to 212.3, signaling higher wholesale prices as dealers stock up for a robust spring market. Demand remains solid with higher sales conversions, aided by expected tax refunds, though the Iran conflict adds near-term risk. January's average used-vehicle listing price was $25,533, and Cox projects wholesale prices ending 2026 roughly 2% higher than December 2025.
President Trump bets bigger spring tax refunds—bolstered by the GOP tax cuts—that they’ll boost his political fortunes, but economists warn the relief could be short-lived as rising costs (housing, healthcare, energy) erode gains, with many filers not receiving large refunds and one-off payments unlikely to shift long-term sentiment.
The White House says President Trump’s Working Families Tax Cuts Act will trigger the largest-ever U.S. tax refund season, with average refunds rising by about $1,000 or more in 2026 and many filers seeing near $4,000 in total tax savings, backed by various outlets noting retroactive provisions and expanded refunds, including no tax on tips, overtime, or Social Security and other incentives.
US retail sales rose 0.6% in November, beating economists’ expectations after October’s revised pullback, with gains broad across categories (specialty stores +1.9%, gas stations +1.4%, home improvement +1.3%). The core 'control group' increased 0.4%. After adjusting for inflation, sales were up 0.3% from September to November, underscoring consumer resilience into the holiday season and into 2026 as tax refunds and policy shifts are expected to support spending despite a softer labor market.
The IRS provides resources and guidance on the new tax law provisions from the One, Big, Beautiful Bill, including deductions for seniors, no tax on tips, overtime, and car loan interest, along with tools for taxpayers to manage their taxes and refunds efficiently.
The 2026 tax refund season is expected to be larger and more favorable due to new tax laws, expanded deductions, and delayed withholding adjustments, with refunds potentially exceeding $4,000 on average, and arriving mainly in mid to late February through early March, especially benefiting middle and upper-middle-income households.
A surge in tax refunds is expected in 2026 due to retroactive tax cuts from 2025, potentially increasing average refunds by $557, which could impact the US economy, though uncertainties remain due to political and fiscal issues.
Billy Long, who previously promised significant tax refunds, is being considered by Donald Trump to lead the Internal Revenue Service (IRS). This potential appointment comes amidst discussions about tax policies and leadership changes within the agency.