Tax refunds are higher so far this year, the IRS says. Here's the average refund amount.

The IRS said it's issuing bigger tax refunds compared with a year earlier, signalling a potential boon for Americans who rely on their annual refund to help pay down debt, start an emergency fund or deal with rising costs.

As of February 16, the average tax refund is $3,207, the IRS said in its latest tax season update. That's 2.1% higher than the same period a year ago.

The bigger average refund marks a reversal from the dip that the typical taxpayer experienced in 2023, when refunds were 3% lower due to the expiration of pandemic tax benefits. That proved to be a double whammy for households already hit by inflation, which has pushed up prices of everything from food to housing.