August 17, 2026

Bigger Refunds, Faster: No Tax On Tips, No Tax On OT

By Drew Hayes

In a report to Congress, the GAO office did a review of the IRS–after complaints of long waits for refunds, ineffective communication with filers and errors. While it is still the IRS, the GAO found some improvements, including a huge jump in the amount of refunds. “By the end of the 2026 filing season, IRS issued $296 billion in taxpayer refunds—an increase of $43 billion, or 17 percent, from 2025 (see fig. 2). The average tax refund that taxpayers received in 2026 increased by $333, or 11 percent, compared to the same period in 2025. IRS attributed these increases to millions of taxpayers claiming new deductions in 2026, such as the “no tax on tips” and “no tax on overtime” provisions,” according to a letter the GAO sent to Congress. No tax on tips. no tax on overtime–promises made, promises kept

Here are some the positives:

Bigger refunds to you faster.
irs gao refund increase

Progress toward getting you your refund, fast.irs gaonrefund timely

Fixing the broken call centers. irs gao calls

Yes, it’s still the IRS–but it’s less of a pain in the pocketbook.

About the Author

Drew Hayes
Chief Content Officer