Americans are expecting hundreds of billions in tax refunds this year, with the average refund expected to be about $3,800 for the 2026 tax season, according to recent reports. And, with millions of people carrying record levels of debt right now — household debt now exceeds $18.5 trillion — the tax refunds issued by the Internal Revenue Service (IRS) represent a crucial part of the budget, helping to cover overdue bills, rebuild emergency savings or provide financial breathing room after months of high-rate credit card payments.
Can a debt collector garnish your IRS tax refund?
