Tax refunds are trending a bit higher this year. Here's how people are spending them

Business Tax refunds are trending a bit higher this year. Here's how people are spending them April 4, 20265:00 AM ET By  Stephan Bisaha Some people are splurging with their tax refunds. Others are finding that their refunds are being swallowed up by the rising cost of gas. Frederic J. Brown/AFP via Getty Images hide caption toggle caption Frederic J. Brown/AFP via Getty Images Having a son who works for H&R Block has its perks, like getting him to handle your own filings. This tax season, 23-year-old Carl Matthew Moral got his parents an estimated $3,700 back. Now his father, Jimmy Moral, is planning on putting that refund money toward a new car for his son. "Well, we're excited to receive it," he said. "And hopefully we'll find the right car for him." Tax Day, on April 15, is now less than two weeks away, and many early filers are seeing bigger refunds. The average tax refund so far this year is $3,521, up about 11% from the same time last year, according to the Internal Revenue Service. These numbers may shift a bit over the coming weeks, as more returns are processed. Sponsor Message The Republican tax cuts in the 2025 One Big Beautiful Bill Act are mainly responsible for the bump, worth about $350 on average so far. The tax and spending law expanded the standard deduction and increased the child tax credit. It also gave deductions for tips and overtime. Politics Here's what's inside the GOP megabill Americans typically go into spending mode once they get their refund, says David Tinsley, Bank of America Institute's senior economist. "There is a kind of sugar-rush effect," he says. And this year, refund recipients are enjoying a bigger spike. Discretionary spending is up, according to credit and debit card data from the institute. Early filers spent more on electronics, hotels, lodgings and restaurants than they did a year prior. Politics Tipped workers expect tax boon this year, but not a long-term fix Yet those refunds are not being spent on pleasure alon...