According to recent figures from the Internal Revenue Service (IRS), tax refunds for tax year 2024, processed in 2025, average $3,382, representing a 6.3% increase compared to the previous period. This growth is primarily attributed to inflation adjustments to the standard deduction and tax brackets, which reduced the tax burden for millions of taxpayers.
The filing season, which began on January 27, 2025 and closed on April 15, has presented unusual fluctuations. Although early data suggested smaller refunds, later figures revealed a rebound after delayed credits like the Earned Income Tax Credit (EITC) were processed. Experts point out that these changes reflect regulatory adaptations to inflationary pressures.
IRS refunds are 6.3% larger than last year
The US media has highlighted the increase in the amounts returned, linked to technical adjustments in the tax system. For 2024, the standard deduction increased from $13,850 to $14,600 for singles, while tax brackets were changed to avoid “tax drag” on taxpayers with stagnant incomes. This allowed more income to be exempt or taxed at lower percentages.
Additionally, the IRS reported that 68.4 million returns had been processed as of February 28, 2025, with 56% of them resulting in refunds. Although an average of $2,169 was initially observed in the week of February 14, this amount rose to $3,453 a week later, after including the payments of the Earned Income Credit (EITC) and the Additional Child Tax Credit (ACTC).
The PATH Act, which prohibits issuing refunds linked to these credits before mid-February, explains the initial discrepancies. “Taxpayers should understand that early data does not reflect the full picture,” an IRS spokesperson said, emphasizing the importance of considering regulatory timelines when analyzing trends.
The following table summarizes the changes in refunds during key weeks:
| Week | Fiscal Year | Average Refund | % Change |
|---|---|---|---|
| Feb 14, 2025 | 2024 | $2,169 | -32.4% |
| Feb 21, 2025 | 2024 | $3,453 | +7.5% |
| Feb 28, 2025 | 2024 | $3,382 | +6.3% |
Regarding dates, the IRS maintains April 15, 2025 as the deadline to file returns, with extensions until October available upon request. However, payment of taxes owed must be made before April to avoid penalties. Taxpayers in federal disaster zones have extended deadlines, according to current provisions.
How tax credits and withholdings can delay refunds
A critical factor in increasing reimbursements is the automatic adjustment of salary withholdings. Many employers did not update their tables following changes to tax brackets, resulting in overpayments. “Those who did not update their W-4 forms could receive more money back,” explained one tax expert we spoke with, underscoring the need to review these estimates annually.
The Child Tax Credit, with a maximum of $1,700 per dependent in 2024, also influenced final amounts. Low- and middle-income families benefited the most, although the IRS has not reported significant changes in eligibility criteria compared to previous years.
On the other hand, taxpayers who opted for itemized deductions—such as mortgages or gifts—did not necessarily see larger refunds, as inflation adjustments in the standard deduction outweighed many of these options. This reinforced the trend to use the simplified deduction, chosen by 87% of filers in 2024.
Although the data suggests a favorable scenario, the IRS urges taxpayers to avoid generic expectations. “Each tax situation is unique. Factors such as changes in marital status, births, or income fluctuations alter the results,” the agency warned on its official blog.