Tax refunds are higher so far this filing season, even though the IRS has received and processed fewer returns compared to this time last year. The agency’s statistics show that for the week ending Feb. 27, the average refund was $3,742, which is 10.6% more than last year’s $3,382. The total refunded amount also went up, rising from $124.8 billion to $136.6 billion, a 9.4% increase.  

According to CPA Practice Advisor, fewer people have filed so far. The IRS received 1.7% fewer returns, dropping from 52.4 million to 51.5 million, and processed 1.8% fewer, from 51.8 million to 50.9 million. E-filed returns done by tax professionals fell 2.7%, but self-prepared e-file returns went up 1.1%. This suggests more people are filing their own taxes online.  

Most refunds are still sent by direct deposit. The number of these refunds grew by 2.2% to 36.9 million, and the total amount refunded this way rose 11.2% to $138.1 billion. The average direct deposit refund was $3,739, which is 8.8% higher than last year.  

These figures support recent reports that larger refunds this year are partly because of changes in tax laws and the timing of credits such as the Earned Income Tax Credit and the Additional Child Tax Credit. As in previous years, the averages may change as more people file closer to the April deadline.