Tax refunds are averaging about $775 higher this filing season for Americans who claim the One Big Beautiful Bill Act (OBBBA), according to IRS CEO Frank Bisignano. Over four in 10 of the roughly 55 million returns filed so far include at least one of the new tax breaks. The average refund across all filers has hit $3,742 as of late February, up more than 10% from the same point last year. However, the law reduced individual income taxes for 2025 by roughly $129 billion, but the IRS revealed in August 2025 that it would not update employer withholding tables for tax year 2025. This decision resulted in employers withholding federal income tax at the old, higher rates for the entire year, even though workers now owed less under the new law.