Stephen Bisaha

So far this year, the average tax refund is about $350 higher than last year, thanks to the tax changes in Republicans' One Big Beautiful Bill Act from last year.

Retiree Bob Jones in Birmingham, Alabama, says he's happy with his refund, but he plans on keeping it all in savings.

The Bank of America Institute says consumer spending has remained steady, while tax refunds cover the extra price at the pump.

But if gas prices, tariffs, and inflation continue to go up, they could erode all the benefits Americans receive from the tax changes.

Stephen Basaha, NPR News.