According to recent Internal Revenue Service (IRS) data, tax refunds for tax year 2024 processed in 2025 average $3,382, a 6.3% increase over the previous period. This growth is primarily due to inflation adjustments to the standard deduction and tax brackets, which have reduced the tax burden for millions of taxpayers.
The filing season, which began on January 27 and ended on April 15, 2025, has seen unusual fluctuations. Although early data indicated smaller refunds, later figures showed a rebound after delayed credits such as the Earned Income Tax Credit (EITC) were processed. Experts note that these changes reflect regulatory responses to inflationary pressures.
IRS refunds are 6.3% larger than last year
The increase in returns has been highlighted in the US media as a result of technical changes in the tax system. For 2024, the standard deduction for singles was raised from $13,850 to $14,600, while tax brackets were adjusted to avoid “tax drag” on taxpayers with stagnant incomes. This allowed more income to be exempt or taxed at a lower rate.
Furthermore, the IRS reported that 68.4 million returns had been processed as of February 28, 2025, with 56% resulting in refunds.
Although an average of $2,169 was initially observed in the week of February 14, this amount increased to $3,453 the following week, after accounting for Earned Income Tax Credit (EITC) and Additional Child Tax Credit (ACTC) payments.
The PATH Act, which prohibits issuing refunds for these credits before mid-February, explains the initial discrepancy. “Taxpayers should understand that early data does not reflect the full picture,” an IRS spokesperson stated, emphasizing the importance of taking regulatory timelines into account when analyzing trends.
The following table summarizes the changes in refunds during key weeks:
| Week | Fiscal Year | Average Refund | % Change |
|---|---|---|---|
| Feb 14, 2025 | 2024 | $2,169 | -32.4% |
| Feb 21, 2025 | 2024 | $3,453 | +7.5% |
| Feb 28, 2025 | 2024 | $3,382 | +6.3% |
These figures contrast with $3,182 in fiscal year 2023 during the same period. Analysts warn that the averages may shift slightly as the season ends, but the upward trend appears to be consolidated.
The IRS has set an April 15, 2025 deadline for filing returns, with extensions available until October upon request. To avoid penalties, all owed taxes must be paid by April. Taxpayers in federal disaster zones have longer deadlines, according to current regulations.
How tax credits and withholdings can delay refunds
Automatic salary withholding adjustments are a critical factor in increasing reimbursements. Many employers failed to update their tables following changes in tax brackets, resulting in overpayments.
“Those who did not update their W-4 forms could receive more money back,” explained one tax expert we spoke with, emphasizing the importance of reviewing these estimates each year.
The Child Tax Credit, which has a limit of $1,700 per dependent in 2024, also influenced final amounts. Low- and middle-income families benefited the most, though the IRS did not report significant changes in eligibility criteria from previous years.
On the other hand, taxpayers who chose itemized deductions—such as mortgages or gifts—did not necessarily receive larger refunds because inflation adjustments in the standard deduction outweighed many of these choices. This reinforced the trend of using the simplified deduction, which was chosen by 87% of filers in 2024.
Although the data suggests a positive outcome, the IRS advises taxpayers to avoid broad expectations. “Every tax situation is unique. Changes in marital status, births, and income fluctuations all affect the results,” the agency warned on its official blog.
