IRS Tax Refunds Are Bigger This Year: Some Offering Up to $300 Extra

As we approach the 2025 tax season, it’s crucial to understand the important dates and deadlines to ensure smooth filing. Here’s a simplified breakdown:

Key Dates for the 2025 Tax Season

• Start of Tax Season: The filing season began on January 27, 2025.
• Deadline for Most Filers: The general deadline to file your tax return is April 15, 2025 (a day that always seems to come too quickly).
• For Those Abroad: If you’re living outside the United States, you have until June 17, 2025 to file.
• Extension: If you request an extension, you can file until October 15, 2025. However, remember that extensions are for filing only—not for paying your tax bill. The IRS does not grant extra time for payments, so be prepared.

Heads-Up on Presidents’ Day Weekend: Expect the IRS to be flooded with calls over the long weekend. If you have questions, it’s better to check their website directly. Phone lines will be as busy as a subway during rush hour!

Changes and Tips for the 2025 Tax Season

The average refund this year is estimated to be $2,065, an increase of about $324 compared to last year. If you use direct deposit, the average refund jumps to $2,165. While it may not be a huge windfall, it’s definitely an improvement.

This marks the first significant increase since 2022 when refunds rose by $400. Since then, they had been on a steady decline, so this year’s bump is a welcome change. While the IRS doesn’t openly say why, it’s likely influenced by inflation and some fiscal adjustments.

As of February 2025, the IRS has processed 23.5 million returns, leaving just 74,000 still pending (most likely the procrastinators who wait until the last minute). They’ve already issued 8 million refunds, which is half a million more than last year.

Interestingly, fewer people are opting for digital filings, raising the question—has the charm of paper forms made a comeback?

Tips for Streamlining Your Tax Filing

To help ensure a hassle-free filing process, the IRS has made several recommendations. Following these tips can simplify your tax filing experience:

1. Organize Your Documents Like a Pro

Treat your tax documents like lottery tickets—keep them safe! Without proper receipts, W-2s, or 1099s, you risk triggering a notice from the IRS. And trust us, it’s never a pleasant surprise.

2. Declare All Your Income

It’s important to report every bit of income—yes, even that $50 your aunt gave you for helping her move. Don’t hide anything, including money made from selling clothes on Facebook Marketplace.

3. File Online and Go Paperless

Skip the paper and file online to speed up the process. Direct deposit is faster, safer, and better for the environment. Plus, it helps the IRS stay organized.

4. Free Resources for Low-Income Earners and Students

If you earn a modest income or are a student, take advantage of the IRS’s free filing options. There’s no need to pay an accountant when you can file at no cost.

5. Self-Service at IRS.gov

If you’re unsure about your filing status or need help, avoid waiting in long phone queues. Visit IRS.gov to check your refund status, make payments, or find answers to your questions—quickly and efficiently.

Impact of Federal Employee Changes on the IRS

The proposed voluntary resignation program for 2.3 million federal employees, which would offer 8 months of pay and benefits, has been causing a stir. Initially planned to reduce the workforce by 5-10%, a judge temporarily halted the program, but it is now back on track.

As a result, 75,000 employees have accepted the deal, which only accounts for 3% of the total workforce, so it’s not a major crisis.

For the IRS, these changes won’t disrupt the tax season. Employees who accepted the offer will stay until May 15, just after the filing deadline.

Those in critical positions, like customer service and IT, cannot leave until May, while others begin paid leave on March 1. So, while there may be some delays, the IRS assures the tax season will continue as planned.

Expect More Stress and Busy Lines in 2025

Looking ahead, the 2025 tax season will likely see the same frustrations—busy phone lines, overwhelmed staff, and constant reminders from the IRS to use their website instead of calling.

If the voluntary resignation program doesn’t significantly reduce staff, the White House may resort to layoffs, but as of now, it’s business as usual.

Will Your Refund Arrive on Time?

Your refund should arrive within three weeks, assuming everything is filed correctly. If you miss something or the IRS needs additional information, prepare for the usual “Where’s my money?” moment. Keep checking your email for updates!

The 2025 tax season may not be without its challenges, but with the right preparation and by following key tips, you can navigate it smoothly. Make sure to file on time, utilize the IRS’s online tools, and stay organized to ensure you get your refund as quickly as possible.

FAQs

What are the key dates for the 2025 tax season?

The filing season starts on January 27. The filing deadline for most is April 15, but if you live abroad, you have until June 17. Extensions are available until October 15.

How can I make my tax filing process smoother?

Follow these tips: Gather your documents, report all income, file online, use free resources if you’re eligible, and avoid calling the IRS by using their website.

Will the IRS be affected by the federal employee resignation program?

The IRS has assured that despite 75,000 employees leaving, the tax season won’t be impacted. Critical roles will remain staffed.

When should I expect my tax refund?

If you file correctly, your refund should arrive within three weeks. Keep an eye on your email for updates.