The IRS began accepting 2024 tax returns on January 27, 2025, and has since processed millions of returns.
With the April 15, 2025, deadline fast approaching, it’s crucial to ensure timely filing to avoid penalties. Alongside filing, paying any outstanding tax liabilities is equally essential.
Many taxpayers can expect higher refunds compared to 2024, contributing to more money in taxpayers’ hands this tax season. However, refund eligibility depends on factors such as tax credits and withholding amounts.
IRS Refund Averages for 2025
As of March 28, 2025, the average IRS tax refund for eligible taxpayers has reached $3,170, an increase compared to $3,050 in 2024.
This marks a significant rise, representing a 3.9% increase year-over-year. The increase is more substantial than the 2.5% cost-of-living adjustment (COLA) for Social Security beneficiaries in 2025.
Here’s a breakdown of the IRS refund amounts:
| Refund Type | Amount (2025) | Amount (2024) | Percentage Increase |
|---|---|---|---|
| Average Tax Refund | $3,170 | $3,050 | 3.9% |
| Average Direct Deposit Refund | $3,236 | $3,124 | 3.6% |
| Total Direct Deposits (2025) | 59,144,000 | 58,119,000 | 1.8% |
| Total Refunds Processed (2025) | 61,577,000 | 60,070,000 | 2.5% |
IRS Direct Deposit Impact
The IRS has processed a significant number of direct deposits in 2025. As of March 2025, the IRS has allocated $191.407 billion for direct deposits, with the average direct deposit refund rising to $3,236, up from $3,124 in 2024.
The 3.6% increase reflects the agency’s ongoing commitment to refunding eligible taxpayers swiftly and efficiently.
Refund Payment Schedule Post-April 10, 2025
For those taxpayers who filed their returns early in 2025, direct deposit refunds are expected within a span of 21 days if filed electronically.
If you filed your taxes and are wondering when you might receive your refund, check out the estimated payment dates for those who filed in late March 2025.
| Filing Date | Possible Refund Payment Date |
|---|---|
| March 20, 2025 | April 10, 2025 |
| March 21, 2025 | April 11, 2025 |
| March 22, 2025 | April 12, 2025 |
| March 23, 2025 | April 13, 2025 |
| March 24, 2025 | April 14, 2025 |
| March 25, 2025 | April 15, 2025 |
| March 26, 2025 | April 16, 2025 |
| March 27, 2025 | April 17, 2025 |
| March 28, 2025 | April 18, 2025 |
Important Reminder
While tax filers must ensure timely filing before April 15, 2025, it is equally essential for those requesting an extension to make any necessary tax payments before this deadline to avoid penalties and interest.
This will help taxpayers avoid additional charges for late payment or filing.
With higher-than-expected refunds, April 2025 promises to be an important time for taxpayers. Understanding refund amounts and payment schedules will help filers plan ahead and avoid missing deadlines.
Keep track of the IRS’s progress through online tools, and remember to file and pay taxes by the April 15 deadline.
FAQs
When will I receive my tax refund in 2025?
Refunds are typically issued within 21 days of electronic filing. Use the IRS “Where’s My Refund?” tool for real-time updates on your refund status.
Why is my IRS refund higher in 2025?
The increase in average refunds is due to a combination of tax credits and potential increases in withholding amounts, making it a more beneficial year for eligible filers.
How can I avoid penalties with the IRS in 2025?
Ensure that you file your tax return by the April 15, 2025 deadline, and pay any outstanding liabilities by this date to avoid fees or interest.