Tax refunds are running higher than last year. Here’s how to make the most of yours | CNN Business

EDITOR’S NOTE: This article, which originally ran on April 7, has been updated with the latest numbers from the IRS. The IRS has processed 99.8 million tax returns as of April 3 and paid out 69.8 million refunds. The average amount returned: $3,462. That’s up $346 (or 11.1%) from the same period last year, but still well below the average $1,000 boost that the Treasury Department projected. The average refund increase is higher for the more than 53 million filers so far who have claimed at least one of the new tax breaks that was part of the tax law enacted in 2025. Those breaks – all deductions – apply to income from tips and overtime, to car loan interest, and include an enhanced deduction for those 65 and up. Those taking these deductions saw their refunds grow by an average of $800, according to Treasury. However large your refund (not just from Uncle Sam, but your state too), think about how it can be put to use most effectively in your life. To help you make that call, consider the following five questions: If you’re behind on paying for the essentials of your life – e.g., your home, your car or your child’s day care – and especially if you’re at risk of fo