Early average tax refunds are bigger, but may be misleading

If you saw more money in your federal income tax refund this year, you're not alone. White House officials reported earlier this week that it appears that the average federal income tax refund has increased by 10% this year. The average federal income tax refund for 2009 is $3,036, according to early data from the Internal Revenue Service. Last year, refunds averaged about $2,770.

The White House claims that the increase is largely due to tax benefits from the most recent stimulus package, known as the American Recovery and Reinvestment Act (ARRA). Specifically, refunds have been affected by the Making Work Pay Credit and the First Time Homebuyer's Credit. Those two credits alone can boost refunds by as much as $8,800 for families.