Americans must have filed their returns by April 15, unless they received an automatic extension or requested one.
The IRS has since reported receiving approximately 0.9% more returns than a year ago, with a 1.5% increase in processed returns to 140.2 million.
In a statement to Fox Business, Deputy Treasury Secretary and Acting IRS Commissioner Michael Faulkender emphasized the processing increase, claiming that the Trump administration is “making Treasury efficient again”.
“These are not just words on paper. The data supports the excellent work that we are doing to ensure that the IRS works for the American people, not against them,” Faulkender explained.
“Our next goal will be to usher President Trump’s tax agenda across the finish line with the unified help of both House and Senate Republicans so we can continue to put more money back into the pockets of hardworking Americans.”
In 2025, approximately 73.5 million Americans chose to have their returns e-filed by tax professionals, representing a 1.7% increase over the previous year, with approximately 64.1 million self-prepared returns.
Millions of refunds have already been issued since February, and the IRS confirmed that the average payout has increased from 2024.
As of April 25, data collected by the agency showed a 3.3% increase from the previous filing season, with the average for 2025 at $2,945 versus $2,852 in 2024.
Along with the extra $93 on average, the total amount of cash sent out as refunds increased by 2%, from $260 billion to $265 billion.
CHANGES MADE
But why this increase?
Matt Schulz, chief consumer finance analyst at LendingTree, told Scripps News that the IRS increased the standard deduction and expanded tax brackets to account for inflation.
Single filers’ deductions were increased by $750, joint filers by $1,500, and heads of households by $1,100.
With the tax bracket change, some Americans were able to keep more money, despite having no change in their annual income.
“There is reason to believe that we will continue to see higher tax refunds going forward,” Dr. Schulz said.
SPENDING CONSIDERATION
Andrea Wororch, a consumer spending expert, also told the publication that Americans should be wary of how they handle their refund.
2025 Tax Season
Tax season started on January 27 and folks must have theirs completed filed on April 15.
Those who fail to file by that time may face penalties.
However, taxpayers who need more time may file for an extension – this gives them until October 15.
The way to do this is by filling out Form 4868, the Application for Automatic Extension of Time To File U.S. Individual Income Tax Return.
This can be done by mail, online with an IRS e-filing partner, or through a tax professional.
While there’s no set schedule, the IRS revealed that taxpayers may receive refunds within 21 days of filing.
Just be sure to avoid making mistakes on any forms as that could tack on extra time.
Those filing through mail will likely get their returns within a month or could even face delays as the IRS processes millions.
As of January 31, the average refund amount totaled $1,928, per the IRS.
This is compared to the $1,395 for the same period in 2024.
The average direct deposit refund for 2025 was even higher, the IRS said, at $2,069.
To check the status of your refund, The IRS has an online tool called Where’s My Refund?
This works within 24 hours of e-filing and generally within four weeks of filing a paper return.
“That is not free money,” she clarified.
“That is money you earned throughout the year, and so you should not just go spend it on a frivolous purchase.”
“That is not free money,” she clarified.
“That is money you earned throughout the year, and so you should not just go spend it on a frivolous purchase.”
According to Schulz, refunds are essentially money that Americans receive back after giving the government a “interest-free loan”.
According to Schulz, refunds are essentially money that Americans receive back after giving the government a “interest-free loan”.
KEEP TRACK
However, the number of refunds is lower than in 2024, according to the IRS.
This year, approximately 90.2 million refunds were issued, representing a 1.3% decrease from 91.3 million in 2024.
Americans can also use the IRS website’s Where is My Refund? feature to check the status of their refund if they have not received it yet.
Residents in certain states are also receiving tax rebates.
In Georgia, a payment of up to $500 will be made soon, provided that at least three criteria are met.
In addition, New Yorkers will receive a “first-ever” $400 inflation rebate.