Tax season brings a payday for many Americans - here’s how many cash in.

Answer: 

• About 7 out of 10 of Americans receive a refund
• Average amount: $3,571 (so far in the 2026 filing year)

Questions:

• How might receiving a tax refund impact consumer spending and saving?
• What are the pros and cons of getting a large tax refund (instead of getting a larger paycheck throughout the year)?
• If you received that average tax refund, how would you use it? Explain why.

Click here for the ready-to-go slides for this Question of the Day that you can use in your classroom.

Behind the numbers (Northwestern Mutual, data from the IRS):

"It may be surprising to hear that some experts want to help you avoid a big tax refund. After all, most people aren't going to turn down a cash windfall. And it can feel like "free money" that's fun to spend any way you want.

But it’s important to remember that if you’re entitled to a refund, it’s likely because you overpaid your income taxes throughout the year—the IRS is simply giving back what was yours to begin with. Being more strategic about your taxes may lead to a smaller refund, but you’ll keep more of your hard-earned money in your pocket. Let’s talk about what you might do with that money instead, and how you could prevent yourself from getting a large tax refund next year."

Note: This Question of the Day pulls data directly from the IRS. 

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Want to dig into the 1040? Check out NGPF's On-Demand module: Tackling the 1040. 

About the Author

Kathryn Dawson

Kathryn (she/her) is excited to join the NGPF team after 9 years of experience in education as a mentor, tutor, and special education teacher. She is a graduate of Cornell University with a degree in policy analysis and management and has a master's degree in education from Brooklyn College. Kathryn is looking forward to bringing her passion for accessibility and educational justice into curriculum design at NGPF. During her free time, Kathryn loves embarking on cooking projects, walking around her Seattle neighborhood with her dog, or lounging in a hammock with a book.