Good news for taxpayers: Find out how much bigger tax refunds are in 2025 compared to last year
For those who have yet to file, a larger refund than the one you received last year might be waiting...
According to the latest IRS figures released on March 14, 2025, the agency had:
- Received: 70,370,000 returns
- Processed: 69,605,000 returns
- Distributed: More than 49,828,000 refunds.
Source: IRS
The average refund issued so far is $3,271, while those who provided direct deposit information received a slightly higher average of $3,300. Because the IRS reports refund amounts as an average, it can be difficult to determine how individual refunds are distributed. However, it’s not surprising to see a higher average refund, particularly in a period of moderate inflation.
In 2024, the Consumer Price Index (CPI) rose by 2.4 percent. Meanwhile, the average refund has increased by 5.2 percent compared to this point last year. For those receiving their refund via direct deposit, the increase is slightly smaller at 4.8 percent.
For those who have received their refund and the amount was less than they expected, the IRS has released guidance on why this might be the case. Failure to pay child support was cited as one reason, a person’s refund might be smaller, with the federal government withholding these funds in cases where past-due obligations exist.
Several factors could cause a tax refund to be less than expected, including past-due child support and state income tax obligations. Learn more from the #IRS at: https://t.co/4L2F4oDfCg pic.twitter.com/nILRKGZ9v3
— IRSnews (@IRSnews) March 25, 2025
Comparing this year to last year
The IRS publishes weekly updates, allowing for year-over-year comparisons. As of this time last year, the IRS had received about 1.2 million more returns, but when looking at the processing rate (returns processed vs. returns received), the agency is keeping pace with 2024 numbers.
Additionally,70.8 percent of returns received have resulted in refunds, up from 68.6 percent in mid-March last year.
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