Where’s My Refund—and Will It Really Be 11% Higher for Homeowners This Year?

With a month of tax season behind us, filers are starting to see their refunds roll into their accounts. Many expected bigger refunds due to President Trump’s One Big, Beautiful Bill Act, and according to the White House, that’s already been the case. 

In a Truth Social post on Tuesday, Trump said tax refunds are “substantially greater than ever before.”

“In some cases, estimates are that over 20% will be returned to the Taxpayer,” he wrote.

As of Feb. 6, 2026, tax refunds averaged $2,290, up nearly 11% from the same time last year.

"Average refund amounts are strong," the IRS said in a statement last week.

But it’s still too early to tell how much bigger refunds could be amid limited IRS filing data. Furthermore, there are concerns that the current government shutdown will affect when filers will receive their refunds.

What does the shutdown mean for my tax refund?

The government has been in a state of a partial shutdown since Feb. 13.

However, the Internal Revenue Service (IRS) said Feb. 2 that it would continue operations "as normal" during the shutdown. This means that, if you’ve already filed your taxes, you’re likely to see your refund reach your account within a few weeks, depending on how you filed.

However, well before the government shutdown, there were concerns about the IRS' capacity to deliver timely returns this year. 

National Taxpayer Advocate Erin M. Collins warned in her annual report to Congress on Jan. 28 that the IRS' ability to process returns and provide taxpayer assistance could be hampered because of the 27% workforce reduction, high leadership turnover, and extensive retroactive changes to tax law in the past year.

Still, the IRS website maintains that processing a tax refund will generally take up to 21 days for e-filed returns, whereas returns sent by mail can take six weeks or more to reach the taxpayer. This is all provided that there are no errors or red flags to address. 

Filing your taxes in 2026: the basics

It’s important to know the difference between standard and itemized deductions. Both can reduce your income tax burden, but you can’t use both at the same time.

The standard deduction is essentially a flat reduction to adjusted gross income that anyone can claim. So, when you file your tax return, you can simply deduct a certain amount from your taxable income and be done.

For the 2025 season, the standard deduction is:

• For single taxpayers and married individuals filing separately, the standard deduction is $15,000. 
• For married couples filing jointly, the standard deduction is $30,000.
• For heads of households, the standard deduction is $22,500.

If the standard deduction seems high—it is! It nearly doubled as a result of the Tax Cuts and Jobs Act. It went up in 2024 and increased again for the 2025 season.

Meanwhile, itemized deductions can be a little more complex. These require taxpayers to claim various deductions to lower their adjusted gross income. It might sound like more work, but it could save some homeowners thousands of dollars.

Rocke Andrews, a mortgage broker at Lending Arizona in Tucson, AZ, explains that most people (90% for the tax year 2020) end up going with the standard deduction. However, if you own a home and especially if you live in high-tax states like New York, Connecticut, and California, itemized deductions could be a big money saver given the changes to SALT deductions .

Popular deductions for homeowners

If you're interested in trying the itemized deductions route, know that the IRS won’t allow homeowners to deduct just any home-related expense from their taxes. For example, you can’t deduct insurance, property depreciation, cost of utilities, HOA fees (except for under these circumstances), gardeners, or housecleaning fees.

But, the IRS does offer several serious cost-saving deductions. Here are some of the more popular ones:

Property taxes

Homeowners are responsible for paying both state and local property taxes, which help fund public services like schools, emergency services, and infrastructure.

For federal tax purposes, you may be able to deduct a portion of these property taxes. Under the current IRS rules, you can deduct up to $40,000 in combined state and local taxes (SALT)—which includes property taxes as well as state income or sales taxes—for most taxpayers. The deduction is capped at $20,000 if you're married filing separately.

The full benefit of this increased cap is reserved for taxpayers whose "modified adjusted gross income" (MAGI) is $500,000 or less (or $250,000 for those married filing separately).

Keep in mind:

• This deduction is only available if you itemize your deductions on your federal tax return.
• The $10,000 SALT deduction cap was introduced as part of the 2017 Tax Cuts and Jobs Act but was increased to $40,000 for the 2025 filing year. It is set to stay in effect until 2029. It will revert back to $10,000 in 2030 unless Congress acts again.
• If you pay property taxes through your mortgage lender’s escrow account, the deductible amount should be listed on your Form 1098.

Mortgage interest

Barbara Schreihans, CEO and founder of Your Tax Coach, calls the home mortgage interest deduction "one of the most significant" deductions for homeowners.

Your mortgage interest is the amount of interest you paid on your home loan in the year. So if you have a mortgage on your home (as most do), you can deduct up to $750,000 in interest as a single filer or married couple filing jointly, or $375,000 for those who are married but filing separately.

Did you purchase discount points when you bought your house? The IRS considers points as prepaid interest, so these can also count toward your total mortgage interest, which means you can deduct the cost of the points.

Necessary home improvements and home office costs

It’s important to note that most home upgrades don’t count as “necessary” in the IRS' eyes. Sprucing up your kitchen or bathroom (even if the space was very much due for a refresh) can’t be included until you sell the house. 

However, if you’re adding a wheelchair ramp or widening doorways for accessibility, you might be able to deduct these expenses.

Likewise, you might be able to deduct the cost of maintaining a home office. However, to qualify, you’ll need to use the space regularly, and exclusively, for work. This can be especially beneficial for people who use a large room or garage space for work, as the size of the deduction is based on the percentage of your home dedicated to the workspace.

Unfortunately, as of 2018, home office deductions are only for those who are self-employed—and don’t apply to employees who work remotely for companies.

Capital gains

For homeowners looking to sell, this one’s for you!

Your capital gain is the difference between the value of a home when you bought it (aka the “basis”) and the value when you sold it. So, if you sell your home, and if you used the home as your primary residence for at least two of the past five years, you can keep some profits without tax obligation.

How much does the average homeowner get back in taxes?

On Jan. 26, the White House projected that refunds will rise by $1,000 or more this year, with an estimate of $3,800 attainable for some. 

However, Andrews admits it’s difficult to say how much the average homeowner will get back in taxes because between income, home costs, and state taxes, every tax return is different.

Schreihans notes that the average mortgage interest deduction is around $1,200 to $3,000, though property tax deductions can also reduce taxable income "significantly."

The average tax return in 2024 was $3,052, according to Bankrate—though that number includes homeowners and non-homeowners alike. These averages have hovered around the same amount in the past decade, ranging from a low of $2,549 in 2020 to a high of $3,252 in 2022.

The Tax Cuts and Jobs Act, signed into law by President Donald Trump in 2017 and renewed in 2025, made a lot of changes to homeowners’ deductions.

Schreihans explains: "The 2017 Tax Cuts and Jobs Act reduced the mortgage interest deduction cap from $1 million to $750,000. It also placed a $10,000 cap on state and local tax deductions, which significantly impacted homeowners in high-tax states by limiting the amount they could deduct."

These changes can make it more difficult for homeowners to save money using itemized deductions, part of the reason many use the standard deduction.

Andrews explains: “Since the Trump tax reform went in place, the amount most get back doesn't depend on individual expenses. Previously, the more you paid on mortgage interest and property tax, the greater the deduction. The only way it matters now is if all your deductions are greater than the standard deduction.”

Where is my refund?

If you’re expecting a tax refund this year, good news: It shouldn’t take too long to get your check in the mail. The earlier you file, the sooner you will receive your refund. (On the other hand, if you owe money, you have until April 15 to pay.)

The IRS states that a refund should be issued "in about six to eight weeks from the date IRS receives your return.”

However, the IRS states that if you file your return electronically, your refund “should be issued in less than three weeks”—and even faster still if you choose direct deposit.

Schreihans recommends taxpayers file early, choose e-filing, opt for direct deposit, and ensure their return is free of errors to avoid delays from the IRS.

If you’re expecting a refund but haven’t yet gotten your check, you can use the IRS’ handy Where's My Refund tool. You’ll need to input your Social Security number or Individual Taxpayer Identification Number, your filing status, and the dollar amount of your refund. 

 Allaire Conte and Jillian Pretzel contributed to this report.