As Tax Day 2025 arrives, millions of Americans are eagerly awaiting their tax refunds, with the Internal Revenue Service (IRS) reporting significant progress in processing returns this year. By April 11, 2025, the IRS had issued over 67 million refunds, averaging around $3,116, which marks a 3.5% increase from last year's average of $3,011. With more than 100 million taxpayers having filed their returns, the IRS has processed approximately 100.3 million federal income tax returns, a slight increase from the same period last year.
The 2025 tax season, which began in late January, has seen a total of 101.4 million tax returns submitted, although this reflects a 0.4% decrease compared to the previous year. Despite this, the IRS has been efficient in issuing refunds, with a total disbursement of $211 billion so far, up 5% from $201 billion at the same time last year. The agency's performance has been particularly notable as it has also begun processing refunds for taxpayers who claimed the Earned Income Tax Credit (EITC) and Additional Child Tax Credit (ACTC), which are often delayed due to IRS regulations.
According to IRS guidelines, the average refund amount is expected to rise as standard deductions have increased and tax brackets have been adjusted for inflation. For 2025, the standard deduction for single filers has risen to $14,600, while for married couples filing jointly, it has increased to $29,200. This adjustment is part of the IRS's annual updates to reflect changes in the economy.
However, not all taxpayers will see larger refunds. Factors such as the Net Investment Income Tax (NIIT), which imposes an additional 3.8% tax on investment income for individuals earning over $200,000, could result in unexpected tax liabilities for some. This year, many investors who moved funds into high-interest accounts may face higher tax bills due to this levy. Additionally, taxpayers who relied on old estimates for their tax payments may find themselves owing money if their income has substantially increased.
For those still filing their returns, it’s crucial to be aware of the deadlines. Taxpayers have until midnight on April 15 to submit their returns electronically or via mail. If filing by mail, returns must be postmarked by this date to be considered timely. The U.S. Postal Service has assured that post offices will operate normally on Tax Day, with some branches possibly extending hours for last-minute filers.
Taxpayers who require additional time can request an extension until October 15, but any taxes owed must still be paid by the April 15 deadline to avoid penalties. The IRS offers an online tool called "Where's My Refund" that allows taxpayers to track the status of their refunds. By entering their Social Security number, filing status, and exact refund amount, individuals can receive updates on their refund status.
Refunds are typically issued quickly, especially for those who e-file and opt for direct deposit. Most refunds are processed within three weeks, but delays can occur, particularly for paper filings or if there are discrepancies in the tax return. The IRS has noted that it is currently on pace to process returns more efficiently than in previous years, which is a relief for many taxpayers concerned about potential delays.
For state taxes, many states have their own online portals to check refund statuses. For instance, New Yorkers can access the Department of Taxation and Finance website to see their refund status, which is generally available about four weeks after filing electronically and up to twelve weeks for paper returns.
As taxpayers navigate this year's tax season, it’s essential to stay informed about changes that could affect their returns. The IRS's Direct File program, which allows eligible taxpayers with simpler returns to file at no cost, has expanded this year and is available in 25 states. This program is designed to simplify the filing process and reduce costs for millions of Americans.
Overall, the 2025 tax season is shaping up positively, with many taxpayers likely to see larger refunds and a more streamlined process. As the deadline approaches, it is crucial for individuals to ensure their returns are filed accurately and on time to maximize their refunds and avoid penalties.
