IRS Reveals Average Tax Refund (So Far) – It’s Good News
(KMDL-FM) When it comes to tax season, there are generally two types of people. Those who hate doing their taxes but go ahead and get them done because they are getting a refund, and then there are some people who are not getting a refund. They are putting off doing their taxes until the last possible moment.
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I guess there is a third group of people, the folks that don't pay their taxes, but we don't have time to discuss what's going on in Congress right now. We want to talk about you and your refund from the Internal Revenue Service.
Why Getting a Large Refund From the IRS is a Bad Thing
There is a bit of myth regarding "huge refunds" from the IRS. Sure, it's nice to get a large financial windfall from Uncle Sam in the first quarter of the new year when all of the Christmas bills are hitting. But the truth is, that was always your money, and you've been allowing the government to use your money interest-free for a whole year.
In a perfect world, when tax time came around each year, you wouldn't owe anything, and the government, state, or federal government wouldn't owe you money back. Your financial planner, accountant, person who does your taxes, or even you, should be able to figure that out. It's basic math.
Is the Average IRS Tax Refund More This Year than Last Year?
But for those who will be getting a refund from the IRS, we have some good news. President Trump said that with the passage of his Big Beautiful Bill, it would mean higher tax refunds for Americans. Based on the early returns from the IRS tax returns, that does appear to be the case.
The average tax refund amount, based on IRS data, is about $200 more when compared to refunds that were made at this same time last year. Of course, the IRS has only been accepting returns for about a month, so speculation is that the average tax refund amount will grow.
How Much More Will the Average Tax Refund Be For 2025 Taxes?
The average tax refund, according to the IRS, in 2025 is expected to be $3,800. That is up by about $700 from last year's average return. The authors of the Big Beautiful Bill suggested the amount would be closer to $1,000. That could still be achieved as more and more Americans file their tax return.
Remember, you can check the status of your return and your refund via the IRS website. The Tax Filing Deadline for both federal and state taxes this year is April 15.
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Gallery Credit: JD Knight