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Tax season is in full swing with the IRS expecting 164 million Americans to file returns by the April 15 deadline. Last year’s average refund reached $3,167, but financial analysts project this year’s average could be approximately $1,000 higher due to recent tax law adjustments.
The majority of tax returns are now submitted electronically – 94% of the more than 165 million individual income tax returns processed last year. While taxpayers with straightforward returns should experience a smooth process, those encountering complications may face challenges due to significant staffing reductions at the IRS.
The agency has experienced a substantial exodus of workers since the beginning of the Trump administration. Starting 2025 with approximately 102,000 employees, the IRS finished the year with only about 74,000 after a series of dismissals and layoffs orchestrated by the Department of Government Efficiency. Many customer service workers accepted buyout offers that were only permitted after last year’s filing deadline, further depleting the agency’s workforce.
For taxpayers expecting refunds, timing depends largely on filing method. Electronic filers should receive their refunds within 21 days, with direct deposit options expediting the process further. Paper returns typically take four weeks or longer to process, with additional delays possible for returns requiring amendments or corrections.
The IRS cautions taxpayers against relying on receiving refunds by specific dates, particularly when planning major purchases or bill payments. To check refund status, taxpayers can use the “Where’s My Refund?” online tool, which updates information daily and is accessible 24 hours after e-filing or approximately four weeks after submitting paper returns.
Tax refunds result from overpayment throughout the year, typically through withholding. Even without excess payments, taxpayers may qualify for refundable credits like the Earned Income Tax Credit (EITC) or Child Tax Credit. Taxpayers have three years to claim tax refunds but must file returns to receive them.
The EITC targets low to moderate-income working individuals and families. Eligibility requires investment income under $11,950 and earned income below specific thresholds based on filing status and dependents. For single filers without children, the income limit is $19,104, while married couples filing jointly with three or more children can earn up to $68,675.
The Child Tax Credit provides up to $2,200 per qualifying child for families earning less than $200,000 annually ($400,000 for joint returns). Children must be under 17, have valid Social Security numbers, be related to the taxpayer, live in the household for more than half the year, and meet several additional criteria.
For families with limited tax liability, the Additional Child Tax Credit offers up to $1,700 per qualifying child for households with at least $2,500 in earned income.
The IRS expects most refunds for taxpayers claiming these credits to be available in bank accounts or on debit cards by March 2 for those selecting direct deposit. Some may receive their refunds earlier, depending on their financial institutions’ processing times.
A significant change this year requires most taxpayers to provide routing and account numbers to receive refunds via direct deposit, as the IRS began phasing out paper refund checks on September 30 in compliance with an executive order.
For those seeking assistance navigating the complexities of tax filing, the IRS offers several online tools and resources, including the EITC Assistant tool to help determine eligibility based on marital status and number of dependents. Taxpayers can also access refund information through the IRS2Go app or their IRS Individual Online Account.
As tax season progresses, financial experts recommend filing early to avoid processing delays, ensuring accurate information to prevent complications, and opting for electronic filing with direct deposit for the fastest refund processing.
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11 Comments
The timing of refunds is always a top concern for taxpayers. Good to know that electronic filers can still expect a relatively quick turnaround.
That’s reassuring. The IRS should prioritize streamlining the e-filing process to make refunds as prompt as possible.
Tax season can be stressful enough without having to worry about IRS staffing issues. Hopefully the agency finds ways to better support its workforce.
It’s concerning to hear about the drastic reduction in IRS employees over the past few years. Hopefully they can rebuild capacity to handle the influx of tax returns.
Electronic filing has become the dominant method for submitting tax returns. With the right tools and preparation, getting your refund quickly should still be possible.
That’s good to hear. As long as the IRS can keep up with the volume, e-filing should make the refund process smoother for most taxpayers.
Interesting to see how tax refunds could be higher this year. With the IRS facing staffing shortages, I wonder how that might impact the refund process and timeline for taxpayers.
The exodus of IRS staff since the Trump administration is certainly concerning. Hopefully the agency can maintain efficient service despite the personnel challenges.
Taxpayers with straightforward returns are fortunate to avoid the complications that staffing shortages can cause. But the IRS really needs to address its workforce challenges.
Agreed. The agency should focus on retaining experienced staff and bringing in new talent to maintain quality service.
The average refund being $1,000 higher this year is welcome news for many households. Curious to see how that might boost consumer spending in the coming months.