IRS tax refund April 2026, stimulus payment, direct deposit relief, tariff dividend fact check

WASHINGTON - The tax filing season is underway, bringing questions about refunds, stimulus rumors and federal dividend proposals. The IRS says refunds are running higher so far this year while warning taxpayers about a rise in misleading payment claims.

Average Tax Refund 2026

The Internal Revenue Service opened the 2026 tax filing season in January and is now accepting and processing federal individual income tax returns for tax year 2025. The agency expects about 164 million individual returns to be filed ahead of the Wednesday, April 15, federal deadline.

According to FOX Business, new IRS data shows that Americans’ average tax refunds have risen this filing season as the April deadline nears.

Through March 20, the average refund reached $3,571, an increase of $350, or 10.9%, compared with the $3,221 average at the same point in the 2025 filing season.

The IRS has refunded more than $202 billion so far, up 12.9% from the $179 billion issued by this time last year.

The total number of refunds issued has also risen, increasing 1.8% to just over 56.7 million, an increase of about 1 million from the same period in 2025.

READ MORE: When are Virginia income taxes due in 2026? Filing deadlines, refund timeline

Preparing & Filing Electronically

Filing electronically and choosing direct deposit remains the fastest way to receive a refund.

• IRS Free File offers eligible taxpayers brand-name tax preparation software at no cost.
• Free File Fillable Forms are available to taxpayers who are comfortable preparing and filing their own returns, regardless of income level.
• Volunteer Income Tax Assistance and Tax Counseling for the Elderly programs offer free basic tax return preparation to qualified individuals.

Where’s My Refund?

Direct deposit remains the quickest way for taxpayers to receive their refunds, according to the IRS. Under Executive Order 14247, the agency began phasing out paper refund checks on Sept. 30, 2025, meaning most taxpayers must now provide routing and account numbers to have refunds deposited directly into their bank accounts.

Taxpayers can track the status of their refund through Where’s My Refund?, the IRS2Go app, or their IRS Individual Online Account. The IRS says most refunds are issued in fewer than 21 days, though some returns require additional review and may take longer.

READ MORE: When are Maryland income taxes due in 2026? Filing deadlines, refund timeline

Who qualifies for the Earned Income Tax Credit?

You must have less than $11,950 in investment income and fall below the program’s income limits to qualify for the EITC.

• Single filers with no children must earn $19,104 or less.
• Married couples filing jointly with three or more children must earn $68,675 or less.

Households can check whether they qualify by using the IRS’s online EITC Assistant.

Who qualifies for the Child Tax Credit and Additional Child Tax Credit?

Most parents qualify for the Child Tax Credit, which offers up to $2,200 per child. To count as a qualifying child, the dependent must meet the following requirements:

• Have a Social Security number
• Be under age 17 at the end of 2025
• Be your child, stepchild, eligible foster child, sibling, stepsibling, half‑sibling, or a descendant of one of these
• Not provide more than half of their own support
• Live with you for more than half the year
• Be claimed as a dependent
• Not file a joint return (unless only to claim a refund of withheld taxes)
• Be a U.S. citizen, national or resident alien

You can claim the full credit if your income is $200,000 or below, or $400,000 or below for couples filing jointly.

The Additional Child Tax Credit, worth up to $1,700 per child, is available to families with little or no federal income tax liability. To qualify, you must have at least $2,500 in earned income.

READ MORE: 'Golden Age of America': Trump administration releases directives following State of the Union

Federal stimulus payments for April 2026

Separate from tax credits, many taxpayers are also asking about possible stimulus payments. So far, taxpayers aren’t expected to see any new stimulus checks this spring.

The last federal economic‑impact payments were issued in 2021, and Congress has not approved any new legislation authorizing another round. In 2024, the IRS sent automatic payments to people who had not claimed the Recovery Rebate Credit on their 2021 returns. Those payments of up to $1,400 per person were delivered by direct deposit or mail between December 2024 and January 2025, with notices sent to recipients.

The final chance to claim that $1,400 credit was by filing a 2021 tax return by April 15, 2025. That deadline has passed, and no extensions were offered.

At this point, Congress has not approved any new stimulus programs, and the IRS has not announced any upcoming payments.

READ MORE: Supreme Court strikes down Trump's tariffs in 6-3 vote

Trump's $2,000 tariff dividend proposals & income tax 

One year ago, President Donald Trump imposed sweeping global tariffs, escalating trade tensions and raising concerns about the U.S. and global economy.

Dubbed "Liberation Day," the tariffs broadly targeted imports, with Trump arguing they would correct trade imbalances and reduce reliance on foreign goods. A year later, many of those duties have been struck down by the Supreme Court, and the federal government is preparing a plan to refund roughly $166 billion in improperly collected tariffs, with details expected by mid‑April.

Following "Liberation Day," tariff collections surged, jumping from $9.6 billion in March to $23.9 billion in May, according to FOX Business. For fiscal 2025, which ended Sept. 30, collections totaled $215.2 billion, Treasury data shows, and the upward trend has continued into fiscal 2026, with receipts already outpacing last year.

Revenue for the current fiscal year has reached $181.6 billion. Since Trump’s return to office, tariff collections have climbed more than 300%, delivering a major boost to federal coffers.

Tariffs act as a tax on imports, and U.S. importers often absorb the initial cost before passing it along through higher prices for wholesalers, retailers and consumers. How tariffs ultimately affect the economy depends on how much of that cost consumers bear, how domestic producers respond and whether the intended economic or geopolitical benefits outweigh the added financial burden.

That dynamic makes the Supreme Court’s ruling especially significant for households and businesses already facing elevated costs. At the same time, the surge in revenue highlights how central tariffs have become to Trump’s economic agenda, with the administration arguing that duty collections can support domestic priorities, reduce the national debt and potentially fund a proposed $2,000 dividend for Americans.

It remains unclear whether that dividend plan is still moving forward.

More information is available on FOX Business.

READ MORE: $2000 tariff dividend? Here’s what President Trump said about the payments

DOGE dividend payment proposals

In 2025, as the Department of Government Efficiency imposed deep cuts across federal agencies, President Trump briefly floated the idea of sending a DOGE dividend to U.S. citizens.

Some Republican lawmakers and administration officials questioned the proposal, and economists warned the payments could worsen inflation by boosting consumer spending.

Republicans made similar arguments in 2021, saying direct payments in President Biden’s pandemic relief package helped push prices higher.

So far, the DOGE dividend has not materialized.

$1,776 Warrior Dividend and Devotion to Duty payments

President Trump in December 2025 announced a one‑time, tax‑free $1,776 "Warrior Dividend" for nearly 1.5 million service members, calling it a tribute to their service and to 250 years of U.S. military history.

The administration says the payments are funded through the president’s One Big Beautiful Bill. About 1.28 million active‑duty troops and 174,000 reservists were set to receive the dividend as a nontaxable boost to their monthly housing allowance.

The Pentagon is distributing the money from a $2.9 billion military housing supplement included in the legislation, the Associated Press reported.

Separately, Coast Guard members will receive a similar one‑time payment. The "Devotion to Duty" bonus totals $2,000 before taxes, with take‑home pay expected to be closer to $1,776. Those payments will be classified as special duty pay and funded through a government measure Trump signed last year to keep federal operations running.

Stimulus scams resurface as IRS warns of fake payment claims

Recurring online claims of $1,702 or $1,390 "stimulus checks" continue to circulate, but they typically trace back to state‑run programs such as Alaska’s Permanent Fund Dividend or to outright scams spreading on social media.

The IRS is urging taxpayers to be careful about emails, texts, websites and social media posts that request money or personal information. Officials emphasize that the agency does not initiate contact through email, text messages or social platforms, and scammers often use fake accounts or cloned links to impersonate the IRS.

READ MORE: $1702 stimulus payment? Here's what we know

IRS stimulus scam warnings

The IRS is warning taxpayers about a wave of fake stimulus‑payment messages aimed at stealing personal and financial information. The agency says scammers are increasingly imitating official IRS language and imagery, making it harder for people to identify fraud accounts.

How to tell if it’s really the IRS:

• The IRS begins with a letter or notice. Official contact starts by mail, and taxpayers can verify any notice through their IRS Online Account or by calling customer service.
• Phone calls come after written notice. Agents may follow up by phone, but they will not leave threatening or prerecorded messages and will never demand immediate payment.
• Private collection agencies contact you only after written notice. Legitimate letters from these agencies include a matching Taxpayer Authentication Number so taxpayers can confirm the contact is real.
• Unannounced visits have largely ended. The IRS has stopped most surprise visits by revenue officers to improve safety for both taxpayers and employees.
• More guidance is available online. Find more information here.

READ MORE: Stimulus payment March 2026, IRS direct deposit relief payment & tariff dividend fact check