IRS Reports Record $145 Billion in Tax Refunds with Higher Average Payouts for 2025
Tax refunds in 2025 have reached $145 billion, with the average refund increasing to $3,324 - up 5.7% from 2024's average of $3,145. This surge comes despite a slight decrease in processed returns.
Calculator and notebook on tax forms
Key 2025 Tax Season Statistics (as of March 7):
- Processed returns: 60.7 million (down 1.8% from 2024)
- Total returns received: 61.4 million (down 2.1%)
- Refunds issued: 43.6 million (up 1.5%)
- Total refunds distributed: $145 billion (up from $133.8 billion in 2024)
Factors Contributing to Larger Refunds:
- Inflation-adjusted tax brackets and standard deductions
- Expanded eligibility for tax credits (EITC and Child Tax Credit)
- Higher tax withholding from paychecks
How to Track Your Refund:
- Use the "Where's My Refund?" tool on IRS.gov
- Download the IRS2Go mobile app
- Call 1-800-829-1954 (IRS refund hotline)
Tips for Filing Before April 15 Deadline:
- File electronically for faster processing
- Verify all information carefully to avoid delays
- Consider professional tax help for complex returns
Electronic refunds typically process within 21 days, while paper returns take longer. With higher average refunds this year, taxpayers should check their eligibility for new deductions and credits to maximize their returns.
Individual refund amounts will vary based on personal circumstances, including deductions, credits, and withholding amounts. Check the IRS tracker for updates on your refund status.