With the IRS tax season underway, a report has been shared claiming the average tax refund process this year is one-third less than the refund earlier. The data shows that the average tax refund processed till 14 Feb was around $2169, whereas last year the average tax refund was $3207 at the same time.
The IRS began the 2025 tax season on 27 January 2025, and in a few days, it will come to its end. The agency expects that many taxpayers will file their tax returns in the last week of the tax deadline.
With these tax refund reports, many taxpayers are wondering if they will also receive low tax refunds or if there are any other reasons. Such taxpayers can stay worry-free as they will receive their desired applicable tax refund.
| 2025 Tax Season Deadline | 15 April 2025 |
| Reason for the smaller Tax Refund | Due to limit of the PATH Act and many taxpayers not filing tax returns in the initial days of the season |
| Average Tax refund amount | $3271 (5.2% higher than 2024) (reported on 14 March 2025 |
| Number of Refunds processed | 49,828,000 (Report on 14 March 2025) |
| Tax Status | Where’s My Refund |
| When to expect? | Within 3 weeks of returns filing for e-filed with direct deposit, and four weeks or more for paper returns |
| Official Website | https://www.irs.gov/ |
Reason for lower tax refund
According to the reports, the lower average tax refund than the previous year does not mean that taxpayers would receive a smaller tax refund because of the following reasons:
- The IRS claims that tax refunds are often smaller in the early days of the tax season since the initial filers are low to middle-income earners, while higher-income taxpayers with complex tax returns file later in the season or wait for the deadline.
- Many working-class Americans have withholding tax through their employer, and all they have is a W-2 form, which results in smaller refunds.
- The IRS is prohibited from processing the tax refund for the tax return with EITC/ ACTC claims till 15 February 2025, which leaves the smaller refunds to process in the initial phase.
- Many businesses or owners take time to gather the tax documents and information to file for the appropriate deductions, and others, which results in filing the tax return later. According to IRS data, a 5% decline is reported in the tax returns submission from the 2024 record around 14 February.
What happens now?
According to the IRS, taxpayers who filed the taxes later on after the PATH Act deadline can find their tax refunds as per the amount they are entitled to, depending on the withheld taxes, credits they claimed, etc.
According to the IRS’s new statistics shared for the 2025 filing season around 14 March 2025, the average refund amount is $3,271, which is greater than the 2024 average refund amount of $3,109 at the same time of the tax season. According to the IRS data, the agency has refunded around $162.992 billion for the 2025 tax season till 14 March 2025, which is 6.7% higher than last year.
How to track the refund?
The IRS Where’s My Refund tool allows taxpayers who have submitted their tax return for the 2024 tax year to monitor their tax refund and its processing stage. The tool allows the taxpayer to get a real-time update on the tax refund same as recorded in the IRS system.
Taxpayers can check whether their tax return has been received, the refund amount accepted, and refund has been sent with the tool. This tool allows taxpayers to track the current tax year and the prior tax return refund.
Taxpayers would only need their refund amount, filing status, Social Security Number or ITIN, and tax year to check the tax refund status through the Where’s My Refund tool. As for the time to check the status, the paper return filers must wait at least four weeks to follow their IRS tax refund; whereas the e-filers can check their status within 24 hours of submitting.
When to expect the refund?
Generally, the IRS processes the tax refund within 21 days of e-filing the tax return with direct deposit, or a month for paper returns, if the tax return has valid information and the agency does not find any errors in the returns. The tax refund can be delayed if the tax information is invalid or missing, or if you owe tax debt to the agency of the federal government.
The taxpayers should track their tax refund through the Where’s My Refund tool, and if it shows the status as Refund Sent, you can expect the refund to be reflected in your bank account in 5 days or several weeks for the physical check.
The 2025 tax season will end in 5 days, taxpayers should complete their tax responsibility to avoid the consequences, or file for a six-month extension if they still need time to file their tax returns. Tax experts believe the tax refund of the people filing near the tax deadline can be delayed due to peak hour and the Trump administration’s job cuts, so track your refund.