The IRS Tax Refunds Are Larger This Year: Some as Big as $300 Extra

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The IRS Tax Refunds Are Larger This Year: Some as Big as $300 Extra

If you’re preparing for the 2025 tax return, don’t worry; I’ll tell you without any boring twists or technicalities. First, key dates: The season began on January 27, and the deadline for most is April 15 (the traditional day when we all run like crazy).

If you live outside the country, you have until June 17 to file. If you request an extension, you can extend it until October 15 (note: this is only for filing, not paying what you owe—the IRS does not give anything away).

And one more thing: the Presidents’ Day weekend will be rife with IRS calls. So, if you have any doubts, Google their website. The lines will be busier than a subway during rush hour.

Deadlines, Tips, and Key Changes for the 2025 Tax Season

This year’s average is $2,065, $324 more than the previous fiscal period. If you use direct deposit, the amount increases to $2,165. It’s not particularly exciting, but it’s something. Of course, this is the first increase in the second week of declarations since 2022, when refunds increased by approximately $400.

They were in a tailspin after that, so this is at least a temporary relief. What’s the reason? Nobody says it, but it’s almost certainly due to inflation and some mysterious fiscal adjustment.

As of this month, the IRS has received 23.5 million returns and processed nearly all of them (only 74,000 are missing, likely due to a neighbor’s habit of leaving everything until the last day).

They have issued 8 million refunds, half a million more than last year. But be cautious: fewer people filed digital returns. Has paper fashion returned? Or does anyone miss the smell of ink and envelopes?

Recommendations to Improve Your Tax Returns Times

The agency made some important recommendations to make the process as simple and seamless as possible

  • First: gather all your papers as if they were winning lottery tickets. Without receipts, W-2 or 1099, you risk the IRS sending you a little letter… and it’s not love.
  • Second: declare all your income. Even what you made selling used clothes on Facebook Marketplace. No hiding that $50 your aunt gave you for helping her move.
  • Third: forget about paper. File online with direct deposit. It’s fast, safe, and you save a tree (or at least don’t make the IRS office look like a dump). Fourth: if you earn little or are a student, use their free resources. Don’t pay an accountant if there are no-cost options. And fifth: if you get stuck, go to IRS.gov. You can check your refund, pay taxes or answer questions without spending 40 minutes listening to elevator music on the phone.

Will it affect your IRS refund? 75,000 government employees agree to “leave” with generous compensation

But, what’s with the federal employee plan drama? The Trump administration proposed an agreement for 2.3 million public employees to voluntarily resign (with 8 months’ pay and benefits). The plan was to reduce the workforce by 5%-10%, but a judge halted the process last week.

However, the court later agreed to proceed. In the end, 75,000 workers agreed (only 3%, so it’s not the end of the world). How does this affect the IRS? Employees who agreed to the deal will stay until May 15, just after the tax deadline.

Those in critical roles (such as customer service or technology) cannot leave until May, while the rest will start paid leave on March 1. Translation: The IRS promises that this will not have an impact on tax season. In other words, “don’t worry, even if some leave, we’re still fighting here.” Of course, if the IRS app is stuck more than usual, you’ll know why.

By 2025, expect more of the same: stress, congested phone lines, and the IRS begging you to use their website instead of calling. If the purchase plan does not result in enough staff reductions, the White House is considering layoffs, but for the time being, everything remains unchanged.

If you provided accurate information, your refund should arrive within 3 weeks. If not, prepare for the classic “where is my money?” question and check your email every 5 minutes.

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