The tax refund process in the United States provides a remarkable financial relief to taxpayers numbering millions annually. In addition to this, Permanent Fund Dividend (PFD) is another yearly reward for the people of Alaska. To compare these two payment schemes in 2025, which one is more lucrative? Let us see.
IRS Tax Refund 2025: What is the average payment?
The Internal Revenue Service (IRS) is paying tax refunds to taxpayers during the 2025 tax year. Till March 14, 2025, the average amount of refund has been $3,271, which is 5.2% higher compared to 2024.
If we discuss the average amount by Direct Deposit, then in 2025 it has risen to $3,330. That means, taxpayers are receiving tax refunds, getting above three thousand dollars on average.
PFD Payments: Alaska Residents’ Benefits
PFD (Permanent Fund Dividend) is only provided to eligible residents of Alaska. This payment is derived from Alaska’s oil revenues. The deadline to apply for PFD is 31 March 2025, and the next payment date is scheduled at 17 April 2025.
In 2025, the highest PFD payment will be $1,702. This is significantly lower than the IRS tax refund.
IRS Tax Refund vs PFD: Who Pays More?
If we take the average and maximum amount, the IRS tax refund pays more than the PFD in both scenarios.
| Type of Payment | Average Amount ($) | Maximum Amount ($) |
|---|---|---|
| IRS Tax Refund | 3,330 | 3,271 (Average) |
| PFD Payment | 1,702 | 1,702 |
It is quite evident that taxpayers are receiving more from IRS tax refunds.
File timely to receive tax refund
Taxpayers should file taxes on time to receive IRS tax refund. Taxpayers who have filed taxes electronically (e-file) and requested direct deposit normally receive their refund within 21 days.
If you e-filed on March 11, 2025 and have all the information accurate, your payment can be made on April 1, 2025. Likewise, if you e-filed on March 12, 2025, your refund may come between April 2 and April 10.
Conclusion: Which payment is best for you?
If you are an Alaska resident and PFD eligible, it can be a good yearly advantage for you. However, if you are a taxpayer anywhere in the US, IRS tax refund surely turns out to be more advantageous.
If you have not yet filed your tax return, file it now so that you can receive your tax refund as scheduled. Further, if you are a resident of Alaska, do not miss applying for PFD by March 31, 2025!
FAQs
Q1. Which payment is higher, IRS tax refunds or PFD payments?
IRS tax refunds are generally higher. In 2025, the average IRS tax refund is $3,271, while the maximum PFD payment is $1,702.
Q2. Who is eligible for PFD payments?
Only Alaska residents who meet the state’s residency and eligibility criteria can receive PFD payments.
Q2. How long does it take to receive an IRS tax refund?
If you e-file and choose direct deposit, you typically receive your refund within 21 days.
Q3. When is the next PFD payment date in 2025?
The next PFD payment is scheduled for April 17, 2025.
Q4. What is the deadline to apply for a PFD payment?
The deadline to apply for the 2025 PFD payment is March 31, 2025.