The Internal Revenue Service (IRS) revealed a 7.5% rise in the average refund amount for those filing their taxes this fiscal year, up from $3,213 in 2024 to at least $3,453 so far. Official figures 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, hitting $3,505. This increase reflects modifications to withholdings and changes in tax policies. The IRS noted that 87% of refunds were delivered via this route, emphasizing its efficiency. The government underlined that processing durations varied according to the filing method and intricacy of each return.
Tax season schedule and processing deadlines
The 2025 tax season started on January 27, when the IRS began taking returns. Those who file electronically and select direct deposit normally receive their refund within 10 to 21 days after approval. Paper returns, on the other hand, might take anywhere from 4 to 8 weeks to process due to the manual scrutiny.
Returns containing credits such as the Earned Income Tax Credit (EITC) or the significant Child Tax Credit (ACTC) experience significant delays. To prevent fraud, the IRS is required by law not to issue these refunds before mid-February. Furthermore, because to strong 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 trace their returns using the “Where’s My Refund?” service, which is available on IRS.gov and the IRS2Go mobile app. The platform “Where is my refund?” displays three critical states.
Return received: The statement is undergoing preliminary evaluation.
Approved refund: The money has been validated, and dispatch is set.
Refund sent: The funds were transferred to the bank or mailed.
To access this information, taxpayers must enter their Social Security number (SSN), marital status, and the precise amount of the refund. Postal checks can take several weeks to deliver.
Factors that influence the final amount that the IRS will return to you
Key characteristics are income level, relevant deductions (for example, mortgage interest or retirement contributions), and tax credits. For example, the EITC directly reduces tax debt by increasing refunds. Similarly, a higher amount withheld during the year leads in larger refunds, although changes in filing status (single, married, head of household) affect the applicable rates.
Significant revisions were made in fiscal year 2024, which were reflected in the 2025 returns:
Increased standard deductions: $14,600 for singles, $21,900 for heads of households, and $29,200 for married couples filing jointly.
The maximum amount per qualifying child has increased to $1,700, and residents of Puerto Rico can now claim it with only one child, eliminating the need of three.
These changes mostly help low- and middle-income households, albeit they postpone payments related to the EITC and ACTC until after February 15. The IRS underlines that these modifications are in response to inflation updates and efforts to increase tax inclusion in territories like Puerto Rico.