As tax season gets underway, the IRS has already processed around 3.2 million refunds by January 31. These refunds are tied to this year’s tax returns that have been filed so far. On average, taxpayers have received about $1,928 back in the first four days of the filing season. It’s important to note that with more than 140 million individual returns expected to be submitted by the April 15 deadline, this average could see some changes as the season progresses.
A tax refund typically happens when you’ve paid more in taxes throughout the year than you owe, either through paycheck withholdings or estimated tax payments.
In other personal finance news, having all necessary forms is crucial to avoid your tax return being flagged for audit. Additionally, by utilizing certain tax credits, lower-income filers might see substantial refunds, even reaching five figures.
As of late December, the average refund for the 2024 tax season stood at $3,138, which is slightly lower than what was seen in 2023, according to IRS data. You can keep track of your refund’s status for the 2025 season using the “Where’s My Refund?” tool or through the IRS2Go app.
Now, if you’re looking to expedite your tax refund, filing electronically and opting for direct deposit is your best bet, as noted by former IRS Commissioner Danny Werfel earlier this year. Usually, the IRS manages to process most refunds within 21 days. However, a few factors can delay the timing. By law, for those claiming the earned income tax credit or additional child tax credit, refunds can’t be issued until mid-February. Assuming everything is in order, these refunds should be disbursed by March 3.
