According to early data on average tax returns for this year’s tax season, Americans may receive a third less money than last year. The Internal Revenue Service (IRS) notes that as more people file their taxes, tax data begins to level out, so people should not pass judgment on this year’s declining tax returns.
As a result, it is advised that Americans wait until April 15th, when the tax season ends. Although 33 million tax returns have been filed thus far, this number is approximately 5% lower than the total number filed at this time last year.
These people will receive $1,000 less in their IRS tax refund
The tax season began two days earlier than the previous year. It was expected that more people would have filed their taxes by now, but that has not happened. It is difficult to pinpoint the exact cause of people’s delays in filing their taxes.
Individuals are speculating that certain recommendations issued by the newly appointed Trump administration will be implemented during this tax season. Because President Trump promised a tax cut during his campaign, including no tip taxes, American workers may have waited for it to take effect before filing their returns.
However, this proposed tax benefit is unlikely to take effect this year. The IRS also speculates that small business owners may have waited longer to receive financial tax forms, which could have contributed to the filing delay.
Given that the deadline for issuing W-12 Forms is January 31st, it is possible that more people obtained their documentation when the tax season began last year. Another factor contributing to the delay in filing tax returns may be that gig workers are taking longer to complete their 1099-K forms.
This year, more people are receiving 1099-K forms. Prior to the ruling, these tax forms were only required to be completed by gig workers earning more than $20,000 and performing more than 20 gigs per year.
What should Americans expect about their IRS tax refund this year?
Several developments are taking place at the same time during this tax season. Elon Musk’s Department of Government Efficiency (DOGE), which aims to reduce costs, appears to be conducting an audit of IRS operations.
Furthermore, Musk’s post on X in February raised concerns that Direct File, a free online tax preparation and filing tool, had been removed. Direct File is still available to citizens in 25 states. It’s possible that all of the uncertainty in Washington is encouraging people to postpone filing their taxes.
Refunds will be processed more quickly for those who file as soon as possible. Just for this reason, tax professionals recommend that Americans file their taxes as soon as possible. Taxpayers are also encouraged to file as soon as possible because IRS offices across the country are closing and many IRS employees may lose their jobs during tax season.
After filing your taxes online, you will receive your refund within 21 days. Tax professionals frequently recommend filing your taxes electronically because paper taxes take longer to process because an IRS agent must handle them.
As of February 14, 2025, the average refund check was approximately $2,169, representing a 32% decrease over the previous year. The average return check for the same period last year was $3,207.
Individual taxpayers are concerned that the $1,000 reduction will mean a smaller tax refund this year. Tax professionals warn all individual taxpayers, however, that they are not guaranteed to receive IRS refund checks of $1,000 or less this year.
This tax refund amount will undoubtedly change as more people file their returns. Members with low to moderate incomes usually file their taxes first.
Following the processing of these simpler tax refunds, only individuals with more complicated taxes and those from wealthy households file their taxes. Some people will file their taxes on April 15th, waiting until the last minute. Any current tax statistics will almost certainly change as more tax returns are filed.
