2025-03-04
The 2025 tax season in the United States started on February 19 and will run until April 15. During this period, millions of Americans will file their tax returns with the Internal Revenue Service (IRS).
This year, however, many people might notice that their tax refunds are smaller compared to 2024.
According to recent IRS data, the average refund has decreased by 32.4% from last year. The agency has been working hard to make submitting tax returns easier and quicker, especially focusing on using more digital tools and providing help for those who need it. This comes after previous years experienced delays and staffing issues.
One key reason for the smaller refunds seen so far might be because the early filers generally have lower to middle incomes. The IRS explains that as more people submit their returns, the numbers usually balance out.
Typically, those with higher incomes or more complex returns file closer to the deadline or even ask for an extension until October 15.
It's also important to note that the current data does not include refunds from the Earned Income Tax Credit and the Additional Child Tax Credit, which start to be paid in late February.
Tax professionals recommend starting your tax preparations early to avoid the rush as the deadline approaches.
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Previous article: Increased Social Security Payments in March with Cost of Living Adjustment
2025 Tax Season Update: Smaller Refunds Expected This Year
The 2025 tax season in the United States started on February 19 and will run until April 15. During this period, millions of Americans will file their tax returns with the Internal Revenue Service (IRS).
This year, however, many people might notice that their tax refunds are smaller compared to 2024.
According to recent IRS data, the average refund has decreased by 32.4% from last year. The agency has been working hard to make submitting tax returns easier and quicker, especially focusing on using more digital tools and providing help for those who need it. This comes after previous years experienced delays and staffing issues.
One key reason for the smaller refunds seen so far might be because the early filers generally have lower to middle incomes. The IRS explains that as more people submit their returns, the numbers usually balance out.
Typically, those with higher incomes or more complex returns file closer to the deadline or even ask for an extension until October 15.
It's also important to note that the current data does not include refunds from the Earned Income Tax Credit and the Additional Child Tax Credit, which start to be paid in late February.
Tax professionals recommend starting your tax preparations early to avoid the rush as the deadline approaches.
-
Previous article: Increased Social Security Payments in March with Cost of Living Adjustment
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