The 2025 tax season is officially underway, and for many Americans eagerly anticipating their IRS refunds, the question on everyone’s mind is: when will the money hit their bank accounts? The IRS began accepting tax returns on January 27, 2025, and leading up to the April 15 deadline, taxpayers across the nation are preparing for what could be another busy filing season.
For most taxpayers, refunds can be expected to arrive within three weeks, assuming everything goes smoothly. According to estimates, the IRS anticipates processing approximately 140 million tax returns this year. Refunds typically arrive much faster for those who e-file and choose direct deposit. Specifically, e-filed returns with direct deposit can see refunds within 21 days of filing.
For paper returns, the timeline is less forgiving. Taxpayers opting for traditional mail may need to wait up to six weeks for their refunds to process. This season, the IRS has put specific measures in place to aid those claiming the Earned Income Tax Credit (EITC) or Additional Child Tax Credit (ACTC). By law, these refunds cannot be disbursed before mid-February, with those expecting such credits seeing their money arrive no later than March 3, 2025.
Key tax deadlines are pivotal for ensuring smooth processing this season. Here are the dates you need to keep in mind:
- January 27, 2025: IRS begins accepting tax returns.
- April 15, 2025: Federal tax filing deadline.
- March 3, 2025: Expected refund date for certain credits.
- June 16, 2025: Deadline for Americans living abroad to file taxes.
So, how can taxpayers file and get their refunds faster? Here are some helpful tips:
- File Electronically: Opting for e-filing vastly reduces processing time.
- Choose Direct Deposit: With direct deposit, your refund will arrive much quicker than by paper check.
- Avoid Mistakes: Double-check all personal info, income, and deductions to prevent delays from errors.
- File Early: The earlier you file, the sooner your refund will be processed.
For taxpayers who filed early and opted for direct deposit, refunds should start appearing between February 10 and February 17, 2025. Of note, those claiming EITC or ACTC credits can expect their refunds to be processed separately, expected on or around March 3, 2025.
Tax credits play a significant role for many families. For the child tax credit, parents can receive up to $2,000 per child under 17 years old. Notably, if you qualify for the refundable tax break known as the additional child tax credit, the IRS will not issue your refund until mid-February. This legislation was enacted as part of anti-fraud measures. Therefore, parents claiming the child tax credit should plan for this slight delay.
To help taxpayers navigate the filing process, the IRS has introduced several options this season. One significant addition is the expanded Direct File program, which allows eligible taxpayers to file their taxes directly with the agency free of charge. After piloting the program last year in just 12 states, it has now expanded to 25 states, allowing easy filing for millions who do not want to deal with commercial tax software fees.
“Filing electronically is the fastest way to receive your money—typically within 21 days,” stated CNN, highlighting the importance of choosing the right filing method.
“Direct File is one of the most efficient ways for Americans to file their taxes,” according to Senator Elizabeth Warren, supporting the program as beneficial for taxpayers seeking convenience.
Taxpayers should also utilize the IRS’s “Where’s My Refund?” online tool, which provides real-time updates on refund status. While e-filers can check their status within 24 hours, paper filers may wait up to four weeks for updates.
It’s also worth mentioning the IRS Free File program, available for individuals with adjusted gross incomes of $84,000 or less, providing access to various tax filing software options at no charge. Unfortunately, it has not seen widespread usage due to misconceptions and aggressive marketing by private firms directing taxpayers to paid services. According to USA Today, public awareness of these free options remains limited, even though eligibility is broad.
With just over two months until the filing deadline, taxpayers are encouraged to start preparing early and utilize every available resource for smooth and stress-free filing. Keeping organized records, timely submissions, and taking advantage of electronic methods can significantly reduce anxiety during the busy tax season. When it’s time to file your taxes, having the right information and choosing the correct paths for refunds and filing can lead to both peace of mind and more funds returned to the bank account.