The Internal Revenue Service (IRS) reported a 7.5% increase in the average refund amount for those filing their taxes this fiscal year, rising from $3,213 in 2024 to at least $3,453 so far. Official data show that as of February 21, 2025, the agency had distributed more than $102.2 billion via direct deposit.
The average refund per direct deposit increased by 7.1% compared to 2024, reaching $3,505. This increase reflects adjustments to withholdings and changes in tax policies.
The IRS noted that 87% of refunds were delivered via this route, emphasizing its efficiency. The agency reiterated that processing times vary according to the filing method and complexity of each return.
Tax season schedule and processing deadlines
The 2025 tax season started on January 27, when the IRS began accepting returns. Those who file electronically and select direct deposit typically receive their refund within 10 to 21 days of acceptance.
Paper returns, on the other hand, can take anywhere from 4 to 8 weeks to process due to the manual review.
Returns containing credits such as the Earned Income Tax Credit (EITC) or the Additional Child Tax Credit (ACTC) experience additional delays. To prevent fraud, the IRS is required by law not to issue these refunds before mid-February.
Furthermore, due to high demand during the peak filing season, which runs from March to April, deadlines may be extended.
How to find out where your tax refund is?
Taxpayers can track their refunds using the “Where’s My Refund?” tool, which is available on IRS.gov and the IRS2Go mobile app. The platform “Where is my refund?” displays three key states.
- Return received: The statement is under initial review.
- Approved refund: The amount was validated and its shipment is scheduled.
- Refund sent: Funds were transferred to the bank or sent by mail.
Taxpayers must provide their Social Security number (SSN), marital status, and the exact refund amount to access this information. In cases of postal checks, the delivery time may extend to several weeks.
Factors that influence the final amount that the IRS will return to you
Income level, applicable deductions (such as mortgage interest or retirement contributions) and tax credits are key determinants. For example, the EITC directly reduces tax debt by increasing the refund.
Likewise, a greater amount withheld during the year results in higher refunds, while changes in filing status (single, married, head of household) modify the applicable rates.
In fiscal year 2024, implemented in the 2025 returns, significant adjustments were made:
- Increased standard deduction: $14,600 for singles, $21,900 for heads of household and $29,200 for married filing jointly.
- Expansion of the ACTC: The maximum amount per eligible child rose to $1,700, and residents of Puerto Rico can now claim it with only one child, eliminating the prerequisite of three.
These changes primarily benefit low- and middle-income households, though they postpone refunds related to the EITC and ACTC until after February 15. The IRS emphasizes that these changes are in response to inflation updates and efforts to increase tax inclusion in territories like Puerto Rico.