The Internal Revenue Service (IRS) has revealed that the average refund amount for U.S. taxpayers this season is $3,676. The figure is 10.6% higher than the figure of $3,324 from a year ago.
As per the latest data, the IRS has received 60.7 million individual returns so far. The Apr. 15 deadline for filing returns is still a month away.
Related: New IRS proposal could literally mean less paperwork
Many American taxpayers are receiving large tax refunds this season because of President Donald Trump's "one big beautiful bill."
As the IRS didn't adjust paycheck withholdings after the July 2025 changes, many workers overpaid taxes through the rest of the year. Hence, they are now receiving bigger tax refunds.
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One category of taxpayers feels left out
However, there is one category of taxpayers who didn't benefit: crypto traders.
Even though tips or overtime pay are not to be taxed, crypto gains still attract high taxes under existing rules. The IRS treats cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH) as property for tax purposes.
Short-term gains on assets held for less than a year are taxed at income rates ranging from 10% to 37%. Long-term gains on assets held for more than a year attract 0%, 15%, or 20% taxes, depending on income level.
Beginning with 2025 transactions, crypto brokers are required to issue Form 1099-DA which reports gross proceeds from digital asset sales. But since it doesn't let brokers report original cost basis for now, crypto traders are worried.
Coinbase's VP of tax Lawrence Zlatkin has warned that new tax rules are complicated for crypto investors. While he admitted that the real income on crypto should be reported, he criticized the requirement to report stablecoin holdings or gas fees, which generate no income.
Full basis reporting is scheduled to come later in 2027, once systems and transfer-tracking standards are more standardized.
Taxpayers should consult with accredited consultants before they file their taxes.
Related: New IRS Form 1099-DA may trigger inflated tax payments
This story was originally published by TheStreet on Mar 13, 2026, where it first appeared in the TAXES section. Add TheStreet as a Preferred Source by clicking here.
