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Tax Refunds Expected to Rise, But Gas Prices May Offset Benefits

KVIA•Friday, March 20, 2026 at 4:23 PM•CNN Newsource

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This year, many taxpayers are anticipating larger tax refunds, averaging about $350 more than last year, due to significant tax cuts implemented by the Trump administration. However, escalating gas prices resulting from the ongoing conflict with Iran could diminish the financial relief many expected. The average cost of gas has surged to $3.91 nationwide, adding an extra $20 to $40 in weekly fuel expenses for households with two cars. As a result, lower-income families, who rely heavily on tax refunds, may find themselves struggling to cover rising costs. The IRS reports that refunds could reach $1,000 by the end of the filing season on April 15, but the overall economic impact remains uncertain as the conflict continues.

Key Details: • Tax filing deadline is April 15. • Average tax refund expected to rise to $1,000 by season's end. • Gas prices have increased by 93 cents since February 28. • Households may spend an additional $600 on fuel if prices stay above $4 per gallon for six months.

economy trump taxes gas-prices iran

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