In the current fiscal year, the Internal Revenue Service (IRS) reported a whooping 7.5% increase in the average refund amount for those filing their taxes, going from $3,213 in 2024 to at least $3,453 so far. As of February 21, 2025, the agency distributed more than $102.2 billion through direct deposit, according to official data.
The average refund per direct deposit also registered an increase of 7.1% compared to 2024, reaching $3,505. This growth reflects adjustments in withholdings and changes in tax policies. The IRS highlighted that 87% of refunds were delivered through this route, prioritizing its efficiency. The agency reiterated that processing times vary depending on the filing method and the complexity of each return.
Tax season schedule and processing deadlines
The 2025 tax season began on January 27, the date the IRS began accepting returns. For those who choose to file electronically and select direct deposit, the refund typically arrives within 10 to 21 days of acceptance. In contrast, paper returns can take 4 to 8 weeks to process, due to the manual review required.
Returns that include credits such as the Earned Income Tax Credit (EITC) or the Additional Child Tax Credit (ACTC) face additional delays. By law, the IRS cannot issue these refunds before mid-February, a measure designed to prevent fraud. In addition, the peak filing season, between March and April, can extend deadlines due to high demand.
How to find out where your tax refund is?
Taxpayers can track their refunds using the “Where’s My Refund?” tool, available on IRS.gov or the IRS2Go mobile app. The platform “Where is my refund?” shows three key states:
- Return received: The statement is under initial review.
- Approved refund: The amount was validated and its shipment is scheduled.
- Refund sent: Funds were transferred to the bank or sent by mail.
Taxpayers must provide their Social Security number (SSN), marital status, and the exact refund amount to access this information. In cases of postal checks, the delivery time may extend to several weeks.
Factors that influence the final amount that the IRS will return to you
Income level, applicable deductions (such as mortgage interest or retirement contributions) and tax credits are key determinants. For example, the EITC directly reduces tax debt by increasing the refund. Likewise, a greater amount withheld during the year results in higher refunds, while changes in filing status (single, married, head of household) modify the applicable rates.
In fiscal year 2024, implemented in the 2025 returns, significant adjustments were made:
- Increased standard deduction: $14,600 for singles, $21,900 for heads of household and $29,200 for married filing jointly.
- Expansion of the ACTC: The maximum amount per eligible child rose to $1,700, and residents of Puerto Rico can now claim it with only one child, eliminating the prerequisite of three.
These modifications especially benefit low- and middle-income households, although they delay refunds linked to the EITC and ACTC until after February 15. The IRS emphasizes that these changes respond to inflation updates and efforts to expand tax inclusion in territories such as Puerto Rico.
