Key Points
- The IRS has processed more than 110 million tax returns, with total refunds exceeding $211 billion.
- This year’s average refunds rose to $3,116, an increase of 3.5% from last year.
- Currently, almost all refunds (97%) are issued in direct deposits.
As tax deadlines approach, the Internal Revenue Service (IRS) reports that over 101 million tax returns have been filed in the 2025 season.
Average refunds increased to $3,116an increase of 3.5% from the previous year.
Despite a 0.4% decline in total revenue received compared to the same period last year, the IRS processed more than 100 million returns. The total refund amounted to $211.1 billion, an increase of 5% from 2024.
Based on trends seen by consumers, the decline in tax refunds is not surprising. It felt like many Americans were on guard this tax season. And we’re seeing a rush of people exploring tax software options today.
The majority of taxpayers opt for direct deposits, with 97% of refunds being issued electronically. The average direct deposit refund was $3,186, an increase of 3.2% from the previous year.
Submission deadlines and extension options
Taxpayers must file their 2024 income tax returns or request an extension by April 15, 2025. If you submit an extension, you will be submitted for an additional six months (until October 15th), but your payment times will not be extended.
The IRS offers a variety of ways to file into the extension, such as by mailing the IRS-free file program, Form 4868, or paying online for “extensions” reasons. Experts recommend conservative tax estimates as people who don’t submit or pay on time can face penalties.
Unclaimed refunds and credits
The IRS is urging it By April 15, 2025, approximately 1.1 million Americans had charged more than $1 billion in unclaimed tax refunds to file their 2021 tax returns. The median refund is estimated at $781.
It is important to remember that Americans have three years to request a tax refund. From that point onwards, it’s gone. If you have not filed a tax return in the last three years, you will receive it to us to request a missing tax refund payment.
Final Thoughts
Once the tax season is over, an increase in average refunds can provide a financial boost to many Americans.
However, changes in how these refunds are used highlight the ongoing economic concerns and the importance of strategic financial planning. The decline in total revenue submitted means that many Americans may feel financially struggling. Your tax return simply adds pressure that cannot be handled at this time.
For those receiving large refunds (over $3,000), this is a good time to change your withholding tax to earn more money each month.
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Methodology
This analysis uses data from the Internal Revenue Service (IRS). Filing season statisticsBased on the latest date on April 4, 2025.
Editor: Colin Graves
In 2025, the average tax refund after refunds rose to $3,116.
