If you’ve been waiting on your IRS refund in 2025, you’re not the only one refreshing your bank app every morning. This year, the IRS surprised many Americans with bigger refunds on average, but millions of others ended up stuck in refund limbo. It’s a classic case of good news, bad news: more money overall, but plenty of frustrated taxpayers left wondering where their cash went.
The average refund jumped almost 4% compared to 2024, hitting more than $3,100. But behind the headlines, issues like fraud checks, paper return backlogs, and staff layoffs left an estimated 5.7 million returns unprocessed by April. So why the disconnect? Let’s break it down.
IRS Refunds Jumped in 2025
| Topic | Details |
|---|---|
| Total Refunds Issued (2025) | 67.7 million refunds worth $211.08 billion by April 4, 2025. |
| Average Refund Amount | $3,170 in 2025 vs. $3,050 in 2024 (up 3.9%) |
| Unprocessed Returns | About 5.7 million still pending by mid-April 2025 |
| Flagged for Fraud/ID Issues | ~250,000 returns flagged; only 42% cleared by April 16 |
| IRS Staffing Cuts | 6,000–7,000 employees laid off during filing season |
| Refund Tracker | Use Where’s My Refund? tool for real-time updates |
The story of IRS refunds in 2025 is a mixed bag. On one hand, the average refund grew to $3,170, giving many Americans a welcome boost. On the other, millions faced delays due to fraud checks, staffing cuts, and paper backlogs. The key to staying ahead? File early, e-file, and use direct deposit. With those steps, you’ll dodge most delays and keep more of your money moving where it belongs — in your pocket.
Why Did Refunds Jump in 2025?
The IRS reports that refunds increased by nearly $10 billion compared to the same time last year. Why?
1. Inflation Adjustments
Tax brackets were widened to account for inflation. This meant many workers were taxed a little less, boosting their refunds.
2. Bigger Credits
The Earned Income Tax Credit (EITC) and Child Tax Credit (CTC) brought relief to millions of families.
Example: A single parent with two kids earning $45,000 might have seen a refund $200–$400 higher this year just because of adjustments in credits.
Why Were Millions Left Waiting?
Fraud Filters & ID Verification
The IRS has tightened fraud controls. About 250,000 returns were flagged, and many taxpayers were asked to verify their identity. Only 42% cleared quickly.
Real-life example: A New York schoolteacher filed in February but didn’t see her refund until June because her return got flagged after a name mismatch with her W-2.
Paper Return Backlogs
Paper returns are the slow lane of tax filing. By mid-April, 5.7 million returns were still sitting unprocessed, many of them handwritten.
Staffing Shortages
The IRS let go of 6,000–7,000 employees in the middle of filing season. Phone lines stayed busy — while 87% of calls were “answered,” only 30% of callers spoke to a live person.
2024 vs. 2025 Tax Refund Comparison
This table helps illustrate the significant changes in refund amounts and filings between the two tax years.
| Category | 2024 Tax Season | 2025 Tax Season | % Change |
| Total Refunds Issued | 86.06 million | 86.02 million | 0% |
| Total Amount Refunded | $245.23 billion | $253.12 billion | +3.2% |
| Average Refund Amount | $2,850 | $2,942 | +3.2% |
A Look Back: How Refunds Have Changed Over Time
Refunds don’t always rise. Here’s a quick timeline:
- 2019: Average refund was about $2,869.
- 2020 (pandemic stimulus era): Refunds spiked with stimulus credits.
- 2023: Average refund dropped by $360 due to the end of expanded credits.
- 2024: Average refund rebounded to $3,050.
- 2025: Climbed again to $3,170.
The lesson? Refunds are tied directly to tax law changes, inflation, and credits.
Practical Advice: How to Avoid Refund Delays
Here’s your game plan:
- E-file & Use Direct Deposit – Paper is slow; digital is fast.
- Check Your Numbers Twice – Even one typo in your SSN can cause months of delay.
- File Early – The earlier you file, the sooner you get in line before the backlog builds.
- Respond to IRS Letters Immediately – If you get Letter 5071C, go to idverify.irs.gov and clear it up quickly.
- Track Your Refund – Use Where’s My Refund?, updated daily.
What Experts Are Saying
Tax pros say the IRS did well considering the circumstances, but there’s work to do. According to the Washington Post, despite layoffs, the IRS handled refunds better than predicted, but trust is still shaky. Economists warn that refund spikes aren’t a true “bonus check” — they’re just a return of money you overpaid during the year.
Don’t Forget About State Refunds
Your state tax refund is completely separate from your federal refund. Some states are faster than the IRS (looking at you, California), while others are even slower. Always check your state’s revenue department website for refund status.
Tips & Common Mistakes to Avoid
Don’t leave money on the table. Here are three things to watch out for to help secure your refund next tax season.
- Mistake #1: Not adjusting your withholding. If you had a big refund, it means you paid too much tax all year. Use the IRS’s W-4 form and their Tax Withholding Estimator tool to get it right for next year.
- Mistake #2: Forgetting to claim credits. Tax credits, like the Child Tax Credit or Earned Income Tax Credit, can give you a significant boost. Make sure you understand what you’re eligible for.
- Mistake #3: Filing a paper return. E-filing is not only faster and more secure but also drastically reduces the time it takes to get your refund. The IRS can process e-filed returns in a fraction of the time compared to paper.
Looking Ahead: 2026 Tax Season
Here’s what you can do to prep for next year:
- Adjust withholdings now if your refund was too big or too small. Use the IRS Tax Withholding Estimator.
- Go digital with all filings.
- Keep records organized: W-2s, 1099s, mortgage interest, student loan interest.
Remember, the best refund is a smaller refund — it means you kept more of your money during the year instead of giving the government an interest-free loan.
FAQs
Q1: How long does it take to get a refund?
21 days for e-file + direct deposit. Paper takes much longer.
Q2: Why is my refund delayed?
Fraud filters, mistakes, or paper filing.
Q3: Is my refund taxable?
Federal refunds aren’t taxable. Some state refunds may be if you itemized deductions.
Q4: Can I speed up my refund?
No magic trick — just e-file early, use direct deposit, and avoid errors.
Q5: Will refunds be bigger in 2026?
Not guaranteed. It depends on inflation, tax credits, and possible policy changes.
