The 2025 tax season is officially underway, and millions of Americans are eagerly anticipating their tax refunds. With the Internal Revenue Service (IRS) beginning to accept and process federal returns on January 27, 2025, taxpayers are gearing up for what many hope will provide much-needed financial relief amid rising costs.
This year, the IRS projects over 140 million individual tax returns will be filed by the April 15 deadline. Tax season inevitably brings questions about the refund process, particularly: how can taxpayers track their refund status?
The IRS offers a user-friendly tool called “Where's My Refund?” which empowers filers to check on their refund's progress. To utilize this service, individuals need to provide their Social Security number or Individual Taxpayer Identification Number (ITIN), their filing status—whether they're married, single, or head of household—and the exact refund amount as stated on their tax return.
Once users have entered their information, they will receive one of three possible status updates. The status could be:
- Return Received: The IRS has received the return and is currently processing it.
- Refund Approved: The refund has been approved, and the IRS is preparing to issue it.
- Refund Sent: The refund has either been sent directly to the bank account or mailed as a check.
According to the IRS, updates will be available 24 hours after filing electronically. For those who filed last year's returns, status updates will take approximately three to four days, and it may take up to four weeks for paper returns to show progress.
For taxpayers opting for electronic filing and direct deposit, refunds typically arrive faster—often within 21 days. The Treasury Department has indicated significant advantages to electronic processing, stating, “Paper check refunds are 16 times more likely to encounter issues, such as being lost or stolen.”
While most refunds will arrive within the expected timeframe, some taxpayers may experience delays. The IRS urges individuals not to anticipate their refund by any specific date, as complications may arise for various reasons. Common causes of delays include
- Errors or omissions on the tax return, which may necessitate additional review from the IRS.
- Claims for the Earned Income Tax Credit (EITC) or Additional Child Tax Credit (ACTC), which federal law stipulates cannot be released until mid-February. For filers claiming these credits, refund updates should appear by February 22, with expected deposits by March 3, assuming all other criteria are met.
- Potential identity theft or tax fraud, which the IRS is vigilant about preventing. The agency has dedicated resources to assist affected taxpayers.
Massachusetts, among other states, has also implemented state-specific refund tracking tools. For Massachusetts residents, personal identification alongside the refund amount must be submitted to check their state refund status.
Despite the ease of tracking refunds, there are also others seeking tax relief programs. Taxpayers dealing with natural disasters, such as those affected by Hurricane Helene, have specific extensions and relief options. The IRS indicated disaster tax relief will allow more time for filing and payment, pushing dates back for those affected. The filing deadline remains April 15, 2025, with extensions available until October 15, 2025, for taxpayers requesting it on or before the due date.
To sum up, with the 2025 tax filing season fully underway, the IRS's “Where's My Refund?” tool remains invaluable for those seeking updates on their tax returns. By availing themselves of these resources, taxpayers can keep informed about their refunds and avoid anxiety during this busy season. With careful filing and tracking, relief from the IRS may be just around the corner!