COLDWATER, MI (WTVB) – Michigan residents are seeing significantly larger federal tax refunds during the 2026 filing season, with average payments reaching $2,476.
This represents a 14.2% increase over the same period last year, a boost primarily attributed to the “One Big Beautiful Bill” enacted in July 2025.
Key policy changes driving these higher totals include expanded standard deductions, a larger child tax credit, and the elimination of federal taxes on tips and overtime pay.
While the IRS continues to process a high volume of early returns, experts anticipate average refund amounts will climb even further as credits for working families begin to be distributed in late February and early March.
Despite the rise in federal refund amounts, many Michiganders are experiencing a “split” in their tax experience due to significant delays at the state level.
While some residents report receiving their federal refunds in as little as six days, many are still waiting for their state payouts from the Michigan Department of Treasury, which has received over 1.6 million returns a 45% increase compared to last year. State officials have processed roughly 1.1 million returns and issued $565 million in refunds so far but are urging patience, noting that a typical turnaround time is now four to six weeks.
This backlog has led to growing frustration on social media platforms as filers wait for state funds to cover essentials like rent and utility bills.
No, we are not. I owed more in federal taxes than every previous year. The only reason I got any return at all was because I got a state returns claim for renting a house. I kept seeing that I would be getting two thousand because of that bill, but when I filed I saw that wasn’t true. I can’t say I’m surprised by the lie, but it is enraging considering how much more expensive it is to live lately.