The 2025 tax season has wrapped up for most Americans, with the final deadline to file returns falling on April 15 — unless they requested or received an automatic extension. According to new reports from the IRS and Treasury officials, this year saw more returns processed, higher refund amounts, and some important tax changes that helped increase overall returns.
More Tax Returns Filed and Processed
As of April 25, 2025, the IRS reported that about 140.2 million returns had been processed — a 1.5% increase from last year. Meanwhile, the number of total returns received went up by 0.9%. Acting IRS Commissioner Michael Faulkender praised the efficiency improvements and linked the progress to the Trump administration’s policies.
Faulkender also stated that their aim moving forward is to pass more tax relief measures with support from both the House and Senate, saying it’s about “putting more money back into the pockets of hardworking Americans.”
How Americans Are Filing Taxes
A growing number of Americans are choosing professional help to e-file. This year, about 73.5 million people had their taxes filed electronically by professionals, marking a 1.7% increase. On the other hand, 64.1 million Americans prepared and submitted their own tax returns.
Bigger Refunds in 2025
The average tax refund has gone up from last year. In 2024, the average was $2,852, while in 2025 it rose to $2,945 — an increase of $93. Though the number of refunds slightly decreased from 91.3 million to 90.2 million, the total money paid out in refunds grew by 2%, from $260 billion to $265 billion.
Why Are Refunds Higher?
The IRS adjusted tax rules to match inflation. This included raising the standard deduction and widening tax brackets. For 2025:
Single filers got a deduction increase of $750
Married couples filing jointly saw an increase of $1,500
Heads of household received an increase of $1,100
These changes meant that even if your income stayed the same, you might have ended up in a lower tax bracket — keeping more of your money.
Matt Schulz, a financial expert from LendingTree, explained that these changes could lead to higher refunds continuing in future tax years if inflation adjustments stay in place.
Be Careful with Your Refund
Experts warn that while tax refunds may feel like a bonus, they are not free money. Andrea Woroch, a consumer spending advisor, reminded taxpayers that this is money they earned throughout the year, not a windfall. “You shouldn’t just go spend it on a frivolous purchase,” she said.
Schulz also explained that refunds work like an interest-free loan to the government, which you get back after overpaying in taxes during the year.
Some States Offering Extra Rebates
On top of federal refunds, certain states are sending out extra payments to eligible residents:
Georgia residents could receive up to $500 in rebates, provided they meet at least three specific criteria.
New Yorkers are set to receive a new $400 “inflation rebate”, the first of its kind in the state.
Track Your Refund
If you’re still waiting on your tax refund, the IRS recommends using the “Where’s My Refund?” tool on its website. It helps track the progress of your refund after filing.
The 2025 tax season brought positive news for many Americans. With improved IRS processing, slightly more returns filed, and an increase in the average refund amount, most taxpayers saw some benefit. Changes in standard deductions and tax brackets helped boost refund values without needing to increase income. However, experts urge people to treat these refunds wisely and remember it’s money they’ve already earned. As tax laws continue to evolve, keeping up to date with these changes can help you better plan your finances year after year.