Tax season is here again, but this year things are looking a bit different in the United States. According to the Internal Revenue Service (IRS), the number of tax returns filed by February 7 was 7.7% lower than the same time last year. At the same time, visits to the IRS website have dropped by 40%, raising eyebrows about public engagement during the tax season.
So, what’s going on—and what does it mean for your refund?
Fewer Returns, But Bigger Refunds
Even though fewer people had filed their taxes early this year, the average tax refund actually increased by 18.6%. This year’s average refund is $2,065, compared to $1,741 around the same time last year.
By the end of the 2024 tax season, the average refund was around $3,138, slightly down from $3,167 in 2023. However, if adjusted for inflation, that’s nearly 30% less than the average refund a decade ago.
Elon Musk’s Department Visits the IRS
In a surprise twist, Elon Musk’s Department of Government Efficiency (DOGE) reportedly visited the IRS earlier this year to observe how the agency operates. While the full impact of this visit isn’t clear yet, Senator Ron Wyden jokingly posted on X (formerly Twitter), “If your refund is delayed, they could very well be the reason.”
More People Filing Online
Over the last decade, more than 90% of Americans now file taxes online. This has made the tax process much faster and simpler. But still, over $7 billion in tax credits and deductions go unclaimed each year. That’s a lot of money left on the table!
Total Tax Returns and Refunds in 2025
As of now, the IRS has received 101.4 million tax returns in 2025—a small drop of 0.4% compared to the same time in 2024. However, the total refund amount has increased by 5%, totaling $211.08 billion so far.
If you’re waiting on a refund, you can track it using the IRS’s “Where’s My Refund” tool on their website.
Is a Big Refund Really a Good Thing?
Getting a big refund may feel great, but what does it really mean? According to Jordan Rippy, a professor at Johns Hopkins University, it means you may have paid more taxes than needed throughout the year.
“You’ve basically given an interest-free loan to the government,” she explained. While there’s nothing wrong with it, she added that you could have used that money earlier to invest, save, or cover other expenses.
Still, many people use refunds wisely—to pay off debt, renovate their homes, or even take a well-deserved vacation.
Tax Season Is a Financial Checkpoint
Professor Rippy suggests treating tax season as a reminder to take stock of your personal finances—just like changing your air filter every month.
“Tax season is like that blinking red light,” she said. “It reminds you to review your money matters.”
While fewer people have filed their taxes early in 2025, the average refund amount is actually higher. This shows how important it is to understand tax deductions, credits, and planning. Whether you’re getting a big refund or none at all, this season is the perfect time to look closely at your financial habits and plan for a better year ahead.