The 2026 tax filing season has officially begun, and early data from the Internal Revenue Service (IRS) shows an interesting trend: average tax refunds are higher, but fewer people are filing returns compared to last year.

If you’re planning to file soon, here’s everything you need to know — including refund amounts, processing delays, e-filing updates, and what to expect in the coming weeks.

📊 2026 Tax Season: Key Highlights (Week 1 Data)

👉 While fewer people are filing early, those who did file are receiving larger refunds than last year.

📉 Why Are Filings Down?

Several factors may explain the slower start:

1️⃣ IRS Processing Delays

Processing numbers dropped by over 12%, raising concerns about backend system delays.

2️⃣ Missing or Draft Forms

Some tax forms were reportedly unavailable or still listed as drafts during early filing days.

3️⃣ Taxpayers Waiting

Many taxpayers may be waiting for:

• Final tax documents (W-2s, 1099s)
• Clarity on deductions and credits
• Updated IRS system performance

💰 Average Tax Refunds Are Higher in 2026

The average refund so far in 2026 is:

• $2,290 per taxpayer
• Direct deposit refunds average $2,388

That’s nearly an 11% increase compared to 2025.

However, the total number of refunds issued is lower — which aligns with fewer returns being processed so far.

⏳ Refund Delays for EITC & ACTC Filers

If you claim:

• Earned Income Tax Credit (EITC)
• Additional Child Tax Credit (ACTC)

The IRS is legally required to hold refunds until mid-February.

📅 Early filers claiming these credits should expect refunds around March 2, 2026.

🖥 IRS Encourages E-Filing

The IRS strongly recommends filing electronically.

Why?

• Faster processing
• Lower error rate
• More secure
• Cheaper for the government

According to government data:

• Paper returns make up only 6% of filings
• But they account for 72% of processing costs

Processing cost comparison:

Nearly 99% of returns filed so far in 2026 have been e-filed.

❌ IRS Direct File Program Shut Down

In 2026, the IRS shut down its Direct File free filing system after political opposition.

Taxpayers now must rely on:

• IRS Free File partners
• Private tax software companies
• Tax professionals

If using Free File, carefully check:

• Income eligibility limits
• State return fees
• Additional service charges

🌐 IRS Website Traffic Surges

IRS.gov web visits increased by 35% compared to 2025.

Many taxpayers are using the “Where’s My Refund?” tool to check:

• Return received
• Refund approved
• Refund sent

📌 Important: The tool updates only once per day (usually overnight).

📅 Important 2026 Tax Dates

• January 26, 2026 – IRS began accepting returns
• March 2, 2026 – Expected EITC refund release
• April 15, 2026 – Federal filing deadline

The IRS expects approximately 164 million returns for tax year 2025.

🔍 What This Means for You

✔ Refunds are higher this year
✔ Filing early may still mean delays
✔ E-file is strongly recommended
✔ EITC filers should expect March refunds
✔ Always check IRS website once daily for status

If your return is simple (W-2 + standard deduction), you may receive your refund quickly via direct deposit.

If your return includes:

• Business income
• Rental income
• Itemized deductions
  Expect longer processing times.

🧠 Expert Insight

Tax experts say early-season processing delays could signal system bottlenecks. However, the IRS maintains that the filing season remains strong and refunds are reaching taxpayers as planned.

📌 Final Thoughts

The 2026 tax season has started slower than last year, but there’s good news: refund amounts are higher.

If you’re planning to file soon:

• Choose e-file
• Double-check your documents
• Avoid checking refund status multiple times per day
• File before the April 15 deadline

Stay informed as the season progresses.