Tax refunds for the most recent filing season are coming in significantly lower, with the average refund down by nearly $1,000 compared to the previous year, according to new data from the Internal Revenue Service (IRS).
As of the week ending February 14, the average refund amount stands at $2,169—a 32% decrease from the $3,207 average refund issued at the same time in 2024.
In addition to smaller refunds, Americans are filing their returns more slowly this year. The IRS reports that the number of tax returns submitted so far is 5% behind the pace of 2024.
With many households facing economic uncertainty, the prospect of lower refunds may be unsettling. However, the IRS insists there is no cause for alarm:
“Historically, filing season numbers even out as more tax returns come in; the IRS expects the tax return filing numbers will level out in future weeks as the April filing deadline approaches.”
One key reason for the drop in average refund amounts is the IRS’ delay in issuing refunds for taxpayers claiming the Earned Income Tax Credit (EITC) or the Additional Child Tax Credit (ACTC).
Even with this factor in mind, refunds have been on a downward trend in recent years:
This tax season has been marked by significant upheaval at the IRS:
As the tax season progresses, the IRS expects refund numbers to stabilize, but for now, many Americans may be in for an unpleasant surprise when they check their refund amounts.
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