Tax refund processing has always been a key issue for American taxpayers. The IRS (Internal Revenue Service) releases the average refund amount every year during tax season. For 2025, the numbers up to March 21 have been released, which can be compared with the 2024 numbers.
How did the 2025 tax refund change?
As per the IRS, a sum of **79,616,000 tax returns were received up to March 21, 2025, which is *1.1% lower* than 2024. This explains that this year either there have been fewer returns filed by taxpayers or they have been processed slowly.
Average Direct Deposit Refund Amount
The IRS released the average direct deposit refund amount of March 21, 2025, which is $3,284**. But it will come down as the tax season moves forward.
- As of March 14, 2025, the average figure stood at $3,330.
- As of March 22, 2024, it was $3,152.
So, 2025 tax refunds are going to be bigger than 2024, which is good news for American citizens.
Total Amount Released by IRS
The total amount released by the IRS through direct deposit as of 2025 is $176.591 billion**. This is *6.1% higher* than in the year 2024, when a total of $166.424 billion was released.
Average tax refund amount
If we consider the total average tax refund amount, then this amount was $3,221 up to March 21, 2025. This is 4.6% higher than in 2024.
- The aggregate refund amount has crossed $179.469 billion.
- Of which $176.591 billion has been distributed through direct deposit.
- The balance amount will be distributed to those taxpayers who have not gone for direct deposit.
Reduction in usage of IRS website and tax professionals
Surprisingly, taxpayers’ usage of the IRS website has been lowered this year. Moreover, Professional tax services have also seen a fall in demand.
- 40,120,000 taxpayers opted for professional tax service, which is lower than last year.
- This shift could also be indicative of the increasing trend of taxpayers towards digital means.
2024 Tax Return Filing Deadline
If you have not already filed your 2024 tax return, you are required to do so by April 15, 2025.
But a taxpayer might get a deadline extension on account of emergency situations. If you were hit by a natural disaster or cannot submit tax returns in a timely manner due to another circumstance, reach out to the IRS to see if an extension is possible.
Conclusion
Based on figures released by the IRS, the average refund value in 2025 is greater than it was in 2024. Nevertheless, there has been a minor drop in the amount of individuals who submit tax returns.
For the people awaiting their tax refund, a piece of good news is that the average amount of refund has gone up and the number of refunds issued is also greater. In case you haven’t filed your tax return yet, do it as soon as possible so that you receive your refund promptly.
FAQs
Q1. Has the average tax refund increased in 2025?
Yes, the average refund amount as of March 21, 2025, is $3,221, which is 4.6% higher than in 2024.
Q2. How much has the IRS refunded through direct deposits?
The IRS has refunded $176.591 billion via direct deposit, which is 6.1% more than in 2024.
Q3. Is the number of tax filers increasing or decreasing?
The total number of tax returns filed as of March 21, 2025, is 1.1% lower than in 2024.
Q4. What is the deadline for filing 2024 tax returns?
The deadline to file 2024 tax returns is April 15, 2025. Some taxpayers affected by disasters may qualify for an extension.
Q5. Why is my tax refund lower than expected?
Refund amounts may vary due to changes in tax laws, withholdings, credits, or deductions. Check your IRS account or consult a tax professional for details.