The average federal income tax refund is 10.9% higher so far this season, as compared to about the same point in 2025, according to early filing data from the IRS. Refunds averaged $2,290 as of Feb. 6, up from $2,065 about one year prior, the Service reported Friday night.
These figures will increase significantly once the IRS begins issuing refunds that include the Child Tax Credit and the Earned Income Tax Credit. But please understand that early data on refunds can be quite deceiving.
From experience, I can tell you that people who owe taxes normally don’t file until the last minute. And sometimes that “last minute” is October 15th, the extension due date.
This is my way of saying that your individual circumstances could vary greatly.
But in considering the fact that income tax rates have remained the same, and that we now have a bunch of new items like tips and overtime which can be non-taxable, it’s obvious that the average refund will be larger this year.
Let me leave you with this…
The next time you think you’re paying too much in federal income tax, take a moment and look at how the rest of the world is taxed. I certainly agree that our progressive income tax system is way too high with the highest federal rate be 37%, but let’s take a moment and look at how our neighbors in Europe are getting screwed.
1 – If you lived in Spain, the top statutory individual rate is 54%. They even impose a separate, progressive wealth tax ranging from 0.2% to 3.5% on worldwide net assets, generally for high-net-worth individuals whether the asset is sold or not.
2 – Austrians pay a top statutory individual tax rate of 55%. Their tax brackets are adjusted annually for inflation and investment income such as cap gains and dividends have a flat rate of 27.5%.
3 – If you were French, your top rate would be 55.4%. Theirs is a household based system, where all members of a household file on the same return. Investments are taxed at 30%.
4 – And the top spot goes to Denmark, where the highest individual income tax rate is 60.5%. Investment income is taxed at 42%.
But if you were paying a 60.5% income tax, how would you possibly be able to save for investments in the first place?
I wanted to share this information because we do some work for American Entities that are owned by European Corporations. The European Accountants I work with do nothing praise our system of taxation.
We’re the envy of the world. Take a moment when looking at your returns this year and consider a 60.5% income tax rate.
Its enough to gag a maggot.
If you’re have any difficulties whatsoever with your accounting and tax work, I’m waiting for your call.
We’re all going to get through this. Let’s get through it together.
Accounting Solutions Ltd. stands ready to complete our mission and purpose of protecting you, your family, and your business. Whether you need Payroll Services, or Accounting and Tax Work, you have but to ask. I’m here and I remain,
Sincerely yours,
Chris Amundson
President
Accounting Solutions Ltd.
773-267-7500
888-310-0300
www.AccountingSolutionsLtd.com
Disclaimer: The content on our website or newsletter is provided solely for general informational purposes and should not be construed as tax, accounting, legal, investment, or professional advice of any kind. Accessing this information does not create, and is not intended to create, an accountant-client relationship. This information may not reflect the most current tax laws, accounting standards, or regulatory developments and may not apply to your specific jurisdiction or circumstances. It is not a substitute for consulting qualified professionals. Before making any decisions or taking any actions, you should seek advice from a professional who is fully informed of all relevant facts pertaining to your situation.
Tax-related content on this site is not intended, nor may it be used by any taxpayer, to avoid penalties that may be imposed under applicable tax laws. To comply with IRS requirements, we inform you that any U.S. federal tax advice contained herein is not intended or written to be used, and cannot be used, for the purpose of avoiding tax penalties or promoting, marketing, or recommending any transaction or matter addressed herein.
All information is provided “as is,” without any guarantee of completeness, accuracy, or timeliness, and without any warranty, express or implied, including but not limited to warranties of performance, merchantability, or fitness for a particular purpose. We disclaim all liability for any loss or damage arising from reliance on this information.
Links to third-party websites are provided for convenience only; we do not endorse or assume responsibility for their content. All materials are the property of our firm and may not be reproduced without prior written consent.