The Internal Revenue Service has spoken out about the 2025 tax season.
Unless they were awarded an automatic extension or submitted a request for one, Americans must’ve filed returns by April 15.
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The IRS has since reported receiving about 0.9% more returns than a year ago, with a 1.5% increase in processed returns at 140.2 million.
Deputy Treasury Secretary and Acting IRS Commissioner Michael Faulkender highlighted the processing increase, arguing that the Trump administration is “making Treasury efficient again” in a statement to Fox Business.
“This isn’t just words on paper. The data backs the great work that we’re doing to make sure 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.”
About 73.5 million Americans also chose to have their returns e-filed by tax professionals in 2025, a 1.7% increase from last year, and there were about 64.1 million self-prepared returns.
Millions of refunds have already gone out since February, and the IRS confirmed the average payout is up from 2024.
As of April 25, data collected by the agency showed an uptick of 3.3% from the previous filing season, with 2025’s average at $2,945 instead of 2024’s $2,852.
Along with the extra $93 on average, the total amount of cash sent out in refunds also increased by 2% from $260 billion to $265 billion.
CHANGES MADE
But why the increase?
The IRS raised the standard deduction and widened tax brackets to account for inflation increases, according to what Matt Schulz, chief consumer finance analyst at LendingTree, told Scripps News.
Single filers’ deduction was bumped up by $750, joint filers by $1,500, and heads of household by $1,100.
With the tax bracket change, it means some Americans were able to keep more cash, even with no change in their annual income.
“There’s reason to believe that we’ll continue to see higher tax refunds going forward,” Schulz added.
SPENDING CONSIDERATION
Consumer spending expert Andrea Wororch also told the publication that Americans should be wary of how they manage 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 emphasized.
“That is money you earned throughout the year, and so you shouldn’t just go spend it on a frivolous purchase.”
Schulz noted that refunds are basically money Americans get back that they gave as an “interest-free loan” to the government.
KEEP TRACK
Still, the number of refunds is lower than in 2024, according to the IRS.
About 90.2 million refunds were sent out this year, down about 1.3% from 2024’s 91.3 million.
Americans can also use the Where’s My Refund? feature on the IRS website to track the refund’s status if they still haven’t received it.
Some tax rebates are also going out to residents in certain states.
In Georgia, a payment worth up to $500 is going out soon, so long as at least three criteria are met.
New Yorkers will also get a “first-ever” inflation rebate worth $400.