IRS reports average tax refunds increase over last year

In the United States, the Internal Revenue Service (IRS) has released new data regarding the 2024 tax filing season, revealing notable trends in tax refunds and collections. As of April 25, 2025, the average tax refund issued has increased by 3.3% compared to the previous year, rising from $2,852 to $2,945. This increase in average refund contrasts with the total number of refunds, which has decreased by 1.3%, declining from 91.3 million to 90.2 million in the same period. Furthermore, the total amount refunded has seen a slower growth rate of 2%, moving from $260 billion to $265 billion over the course of the last year. This shift is an important indicator as the IRS continues to adjust its operations to be more efficient in tax collection. The IRS noted that direct deposit remained the preferred payment method for taxpayers, with nearly 84.8 million refunds paid directly into accounts. This number reflects minimal variation from the prior year, only a slight increase of 0.1%. Those who opted for direct deposit experienced a 2.7% rise in average refund amount, coming to $3,023. The IRS has been working on improving its efficiency in tax collection, declaring an overall increase in tax receipts of more than 5% from the previous year. In terms of filing trends, the IRS reported a 0.9% increase in the number of tax returns received this year, surpassing 142.5 million submissions. The total number of processed returns grew by 1.4%, culminating in over 140.2 million returns being processed. There is a clear division in filing methods, as many taxpayers chose between self-prepared returns and those prepared through tax professionals. Approximately 73.5 million returns were e-filed by professionals, a 1.7% increase, while nearly 64.1 million returns were filed by taxpayers themselves, reflecting a 0.9% rise from the previous year. The Deputy Treasury Secretary, Michael Faulkender, emphasized efforts to enhance the IRS's efficiency, asserting that their aim is to ensure that the IRS serves American taxpayers favorably. The IRS reports that ongoing improvements will facilitate the administration of President Trump's tax agenda, which is expected to contribute positively to the financial situations of hardworking Americans. These findings from the IRS are indicative of a shifting landscape in tax filing and refund processing, showcasing trends that could affect taxpayers and policymakers alike in the near future.