Americans will be able to file their 2025 tax returns with the IRS starting on Monday, Jan. 26, with many taxpayers eagerly anticipating the timeline for their refunds. The timing of refunds largely hinges on whether individuals file electronically or via paper. Last tax season, 93% of filers opted for electronic submissions, which generally result in quicker refunds. In contrast, paper returns demand manual processing by IRS employees, often leading to significant delays.
Experts caution that this year’s tax season may come with customer service challenges at the IRS, stemming from employee reductions and issues related to a recent federal shutdown that resulted in furloughs. “Taxpayers might want to lower their expectations and prepare for unanswered phone calls to the IRS and delays in tax refunds, given these ingredients for a problem-prone filing season,” warns Janet Holtzblatt, a senior fellow at the Urban-Brookings Tax Policy Center. The IRS has not commented on these concerns.
For those who choose to file electronically, the IRS indicates refunds are usually processed in less than 21 days. Consequently, a taxpayer submitting a Form 1040 on Jan. 26 could anticipate receiving their refund by Feb. 16, assuming no complications arise with the return. In a recent announcement, the IRS stated it has begun phasing out paper refund checks, making it essential for taxpayers to furnish their bank routing and account numbers for direct deposit. After confirmation via the “Where’s My Refund?” app that the IRS has dispatched a refund, it may take up to five additional days for the funds to appear in the taxpayer’s bank account.
However, for taxpayers claiming the Earned Income Tax Credit (EITC) or the Additional Child Tax Credit (ACTC), there will be a longer wait. The IRS is legally required to hold these returns longer to allow for thorough fraud checks and to prevent misapplication of credits—an issue affecting roughly one-third of EITC claims.
Filers claiming EITC or ACTC can expect their refunds no sooner than March 2, according to the IRS. To track their refund status, individuals can utilize the IRS’s “Where’s My Refund” tool, which offers updates typically around 24 hours after electronic filings. For those submitting paper returns, they may have to wait about four weeks before seeing their status updated, due to the slower processing times involved.
To access the “Where’s My Refund?” tool, users will need to provide several pieces of information: their Social Security number or individual taxpayer ID, filing status (like “married filing jointly”), and the exact refund amount. The app will provide one of several statuses: “Return Received” (indicating processing has begun), “Refund Approved” (the IRS has approved the refund and is preparing to issue it), and “Refund Sent” (the refund has been dispatched to the taxpayer’s bank or via mail).
On the prospect of refunds for the current tax year, taxpayers can expect significant sums, as last year’s average refunds hit nearly $3,200. Financial services company Piper Sandler recently suggested that this year’s average refunds might increase to around $4,200, with some households potentially receiving even larger amounts due to new tax regulations. These changes include a $6,000 senior deduction and an expanded $40,000 deduction for state and local taxes, benefiting several groups, including older Americans and homeowners.
