As the 2026 tax season moves forward, many Americans are asking two key questions: when is the IRS filing deadline, and why are tax refunds higher this year. New insights from Bank of America suggest refunds are set to rise for many taxpayers, driven by a mix of filing behavior, withholding trends, and economic factors.
When Is the IRS Tax Filing Deadline in 2026
The Internal Revenue Service typically sets the federal tax filing deadline in mid-April. For most taxpayers in 2026, the due date is expected to fall around April 15, unless adjusted due to weekends or federal holidays.
Taxpayers who need more time can request an extension, which allows additional time to fileābut not additional time to pay any taxes owed. Any unpaid balance is still due by the original IRS deadline to avoid penalties and interest.
Why Tax Refunds Are Higher This Year
According to Bank of America analysis, average tax refunds are trending higher in 2026 compared to previous years. One of the main reasons is over-withholding, where more taxes were taken out of paychecks throughout the year than ultimately owed.
With wage growth, job changes, and conservative withholding choices, many taxpayers ended up paying more upfront, resulting in larger refunds at filing time.
Filing Patterns Are Playing a Role
Bank of America also notes that more taxpayers are filing early and electronically. Early filers often receive refunds sooner and are less likely to make errors that delay processing. Filing early can also lock in refundable credits and reduce complications during peak tax season.
Electronic filing combined with direct deposit remains the fastest way to receive a refund.
Refundable Credits and Adjustments
Refundable tax credits continue to be a key factor in refund size. Eligibility for certain credits can increase refunds even if a taxpayer owes little or no federal income tax. These credits, along with deductions and income adjustments, can significantly affect final refund amounts.
Each refund is calculated individually, so not every taxpayer will see an increase.
IRS Processing Timeline in 2026
The IRS issues refunds on a rolling basis after returns are accepted and processed. Most taxpayers who file electronically and choose direct deposit receive refunds within up to 21 days, though some returns take longer due to verification or review requirements.
Paper-filed and amended returns generally experience longer processing times.
What Taxpayers Should Do Now
With the filing deadline approaching, taxpayers should:
- Confirm the correct IRS due date for their situation
- File electronically and choose direct deposit
- Review withholding and income details carefully
- Avoid waiting until the last minute, which can increase errors
Those expecting refunds may want to review withholding settings for future years to better balance take-home pay and refund size.
The Bottom Line
The 2026 tax filing deadline remains a key date for Americans, but the season also brings good news for many filers. As Bank of America points out, higher refunds this year are largely