Americans' tax refunds larger than last year so far: IRS
Published On Mar 11, 2025, 7:00 AM
The IRS reports that average tax refunds for American taxpayers are higher this year compared to last year. As of February 28, 2025, the average refund rose to $3,382, which is a 6.3% increase from the previous year's average of $3,182. The total amount refunded has increased by 8.1%, reaching $124.8 billion, with the number of refunds issued also up by 1.7%. Direct deposits, which account for the majority of refunds, have also increased, with average direct deposit amounts climbing 5.9%. This uptick in refunds could boost consumer spending, potentially benefiting the economy.
Stock Forecasts
XLY
Positive
The increase in tax refunds suggests higher disposable income for consumers, which may lead to increased spending in sectors such as retail and consumer goods. This could benefit companies that rely heavily on consumer spending, particularly in the retail and e-commerce sectors. Additionally, ETFs focused on consumer discretionary stocks may see positive momentum as consumers receive their refunds and use them for spending.
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