Let’s get straight to the point—you’re here with questions, and here come the answers. A tax refund is the money the U.S. government returns to you when you’ve paid more taxes than required. It’s basically the government saying, “You gave us too much. Here’s the extra back.”
According to the latest IRS data, the average tax refund in 2025 is $3,221, based on information collected through March. This number is quite similar to 2024’s average.
Interestingly, if you choose direct deposit, you might even get $60 more on average. That’s because this method is faster and has fewer chances of errors. Back in February, the average refund was lower—around $2,169. But when people started filing returns that included credits like the Earned Income Tax Credit (EITC) and Additional Child Tax Credit (ACTC), the average refund amount went up.
These types of refunds are usually processed after mid-February, so if you claimed these credits, your refund might be higher—but you’ll need to wait a bit longer.
Common Mistakes That Can Delay Your Tax Refund
Sometimes, even a small mistake can stop your refund from reaching your bank account. Here are the top errors people make—learn from them so you don’t repeat them!
Don’t Do This:
- Wrong Social Security Number (SSN) or name: It may seem like a basic error, but it’s the most common one. The IRS cannot guess your details.
- Forgetting deductions or credits: Did you pay student loans or donate to a charity? Don’t forget to claim these! The EITC is especially helpful if you have a low income.
- Incorrect bank account for direct deposit: One wrong digit in your account number can send your money to someone else—or nowhere at all.
Also, remember: if you owe taxes, child support, or have unpaid student loans, the IRS may reduce (offset) your refund. They’ll usually send you a notice, but it’s better to check ahead.
What Happens If You File Taxes Late?
Filing your tax return after April 15 can lead to penalties. The IRS charges a 5% monthly penalty on the tax you owe, up to 25%.
But if you’re expecting a refund, you won’t be fined. Still, there’s no reason to delay—it’s your money!
Use the IRS tool “Where’s My Refund?“ to track your refund status. If there’s an issue, you’ll find out early and can take action.
Filing Method Matters:
- Paper filing: May take up to 6 weeks to process.
- E-filing with direct deposit: Refund can arrive in less than 21 days.
Digital is also better in case the IRS selects your return for an audit. Having documents stored online makes everything faster and easier.
Why Is My Refund Lower Than Last Year?
If your refund is smaller than last year, don’t panic. A few things could explain the difference:
- You earned more income, which means fewer credits or more tax owed
- You didn’t claim as many deductions this time
- Your tax situation changed (maybe your kids are now adults, or you changed jobs)
If something looks strange, contact the IRS directly. It’s always better to clear doubts early than deal with bigger issues later.