In the fiscal year 2025, the Internal Revenue Service (IRS) reported a notable 7.5% increase in the average refund amount for taxpayers, growing from $3,213 in 2024 to at least $3,453 so far.
By February 21, 2025, the IRS had already distributed over $102.2 billion via direct deposit, according to official reports.
Increased Refund Amounts for 2025
The average refund for direct deposit saw a rise of 7.1% compared to the previous year, reaching $3,505. This increase can be attributed to a combination of adjustments in tax withholdings and changes to tax policies.
The IRS noted that 87% of refunds were distributed through direct deposit, highlighting the convenience and speed of this method. However, it is important to understand that processing times may vary depending on the filing method and the complexity of the tax return.
Tax Season Schedule and Processing Deadlines
The 2025 tax season officially began on January 27, marking the start of when the IRS began accepting tax returns. For those filing electronically and opting for direct deposit, refunds are typically issued within 10 to 21 days after the return is accepted. On the other hand, paper returns take longer, with processing times extending to 4 to 8 weeks, due to manual reviews.
If the return includes credits such as the Earned Income Tax Credit (EITC) or Additional Child Tax Credit (ACTC), taxpayers may experience further delays. According to legal requirements, the IRS cannot issue refunds involving these credits before mid-February to combat potential fraud. Additionally, the peak filing season—from March to April—may lead to extended deadlines due to the higher volume of returns.
How to Track Your Tax Refund
Taxpayers can conveniently check the status of their refunds using the “Where’s My Refund?” tool, available on IRS.gov and the IRS2Go mobile app. The tool provides three key stages of refund processing:
| Status | Description |
|---|---|
| Return Received | The IRS has received the return and it is under initial review. |
| Approved Refund | The refund has been approved, and the shipment is scheduled. |
| Refund Sent | The refund has been sent to the bank or mailed to the taxpayer. |
To access this information, taxpayers need to provide their Social Security Number (SSN), marital status, and the exact refund amount. If a refund is being issued by check, the delivery time may take several weeks.
Key Factors Affecting Your Refund Amount
Several factors determine the final refund amount the IRS will return to you. These include your income level, applicable deductions (such as mortgage interest or retirement contributions), and tax credits. For instance, the EITC can increase your refund by directly reducing your tax liability.
Additionally, a higher withholding throughout the year can lead to a larger refund, while changes to your filing status (e.g., single, married, or head of household) will influence the tax rates applied.
Significant Adjustments for Fiscal Year 2024
The 2025 tax returns reflect several important adjustments:
- Standard Deduction Increases:
- $14,600 for single filers.
- $21,900 for heads of household.
- $29,200 for married couples filing jointly.
- Expansion of the ACTC:
- The maximum amount per eligible child has increased to $1,700.
- Puerto Rican residents can now claim the ACTC for a single child, removing the previous requirement of at least three children.
These adjustments, which primarily benefit low- and middle-income households, also cause delays for refunds related to the EITC and ACTC. These refunds are not issued until after February 15 in compliance with regulations designed to reduce the risk of fraud. The IRS underscores that these changes are part of its efforts to address inflation and to enhance tax inclusion in territories like Puerto Rico.
The IRS has provided some good news for taxpayers in 2025, with refund amounts showing significant increases, thanks to policy changes and tax adjustments. The average refund has increased by 7.5% compared to last year, and the IRS continues to streamline the process with a higher percentage of refunds being delivered via direct deposit.
However, factors like the EITC and ACTC may cause delays in refunds, especially for those filing during peak tax season. As always, it’s essential to file early and use tools like the “Where’s My Refund?” feature to keep track of your refund status.
FAQs
How can I track the status of my tax refund?
You can track your refund through the “Where’s My Refund?” tool on IRS.gov or the IRS2Go mobile app.
Why is my refund delayed if I claimed the EITC or ACTC?
By law, the IRS cannot issue refunds involving the EITC or ACTC before mid-February to prevent fraud.
How long does it take to get my refund after I file?
If you file electronically with direct deposit, you can expect your refund in 10 to 21 days. For paper returns, processing takes 4 to 8 weeks.