Tax season of 2025 is shaping up to be a complicated affair for many taxpayers as recent reports indicate that tax refunds are significantly smaller compared to last year. According to the IRS, the average refund as of mid-February 2025 is approximately $3,000, which marks a decrease of 10% from last year’s average of $3,300 during the same period. This trend comes amidst a decline in the overall number of tax returns filed. Susan Tompor from the Detroit Free Press highlighted the situation, noting that many individuals are deterred from filing their returns, with some expressing reluctance due to financial uncertainties. She stated, ‘People are more apprehensive about their finances this year, which could influence their decision to file.’ CBS News reports that the IRS has already processed over 10 million returns for the 2025 tax season, but this figure represents a 15% drop in filings when compared to the previous year. Meanwhile, Kelly Phillips Erb from Forbes indicated that the processing times for tax refunds could also be extended due to the fewer agents available to handle returns, along with the ongoing backlog from previous tax seasons. The filings indicate a trend where lower refunds and complications in processing may lead to increased anxiety among taxpayers nationwide. Factors such as inflation and economic adjustments continue to impact both personal finances and the broader tax landscape, prompting a call for people to be more proactive about their filings in this challenging time. The IRS encourages taxpayers to use available online resources for filing assistance and to check their refund status online to avoid additional uncertainties.
IRS Reports Smaller Tax Refunds for 2025: A Challenging Season for Filers
