If your 2026 tax refund feels significantly heavier than last year’s, it isn’t a mistake. Preliminary data from the IRS indicates that the average direct deposit amount has jumped by roughly 14% compared to the previous filing season. While inflation has made groceries more expensive, it has essentially “supercharged” the tax code in your favor this year.
Here is the Bottom Line Up Front: The IRS adjusted the 2025 tax brackets and Standard Deduction by historically high margins to combat inflation. This means less of your income is subject to tax. For the average single filer earning $60,000, these adjustments alone created an “automatic” $300+ reduction in tax liability—money that is now flowing back to you as a refund.
The “Inflation Indexing” Bonus
Every year, the IRS adjusts tax brackets. Usually, it’s a tiny nudge. For the 2025 tax year (filed in 2026), the adjustment was massive. Because the brackets “widened,” you could earn more money this year without jumping into a higher tax rate.
The “Extra $300” Math:
- Standard Deduction (Single): Jumped to $15,000 (approx).
- Standard Deduction (Married): Jumped to $30,000 (approx).
- Result: A single person pays zero federal tax on roughly $800 more income than last year. At a 12% or 22% tax rate, plus the bracket shift, that equals roughly $300 in savings for the median worker.
Don’t Miss the “Hidden” Credits
Beyond the automatic adjustments, millions are leaving money on the table by missing three specific line items that were expanded for 2026:
- Energy Efficient Home Improvement Credit: Did you buy a new front door or window in 2025? You can claim 30% of the cost, up to $1,200. Even a single door replacement usually nets a $300 credit.
- Saver’s Credit: If you contributed to a 401(k) or IRA and earn under $36,500 (single), the government will give you a tax credit worth 10–50% of your contribution.
- Student Loan Interest: The deduction remains, allowing you to deduct up to $2,500 of interest paid, lowering your taxable income further.
When Will I Get It?
If you file electronically today with direct deposit, the timeline remains standard:
- Simple Returns: 10–21 Days.
- Returns with EITC/ACTC: Funds released post-Feb 15 (PATH Act).
Check your status using the IRS Where’s My Refund tool, but expect that final number to be a pleasant surprise.
Disclaimer: This article is for informational purposes only and does not constitute financial or legal advice. Always consult official government resources.
Evan Cole Editor-in-Chief | Breaking News & Public Policy
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