As the final hours tick down to the tax filing deadline in the United States, the Internal Revenue Service (IRS) has already crossed a big milestone. By April 4, 2025, the IRS had processed more than 100.3 million tax returns and issued around 67 million refunds, totaling over $210 billion in payments to taxpayers.
This tax season has seen positive trends in refunds and filing speed, although a few states affected by natural disasters have received deadline extensions. Let’s understand what’s going on this year with U.S. federal taxes, refunds, and what people should know before the April 15 deadline.
More Returns, Bigger Refunds
According to the latest report, the average tax refund in 2025 is 3.5% higher than last year. This is good news for taxpayers, as more money is going back into their pockets. Most refunds have been issued in less than 21 days for people who filed their returns electronically and correctly.
By the tenth week of tax season, the IRS had already processed 100.3 million returns, slightly more (0.2%) than during the same period in 2024. Out of the 101.4 million total returns received, about 98.1 million were sent online — 53.3 million filed by professionals and 44.7 million by individuals using tax software. Only 2.1 million paper forms were submitted.
Electronic Filing Dominates
This year, around 99% of taxpayers chose to file their returns electronically, showing how popular and convenient online filing has become. The IRS expects the overall volume of returns to be similar to last year, even though there’s a slight drop of 0.4% in total returns submitted so far.
Electronic returns are the fastest to process — most refunds are completed in under three weeks if the return is accurate. However, paper returns or returns with mistakes can take up to six months to be processed, so e-filing is clearly the better option.
States with the Highest Tax Refunds
Some U.S. states have much higher average refund amounts than others. As per the IRS report:
Florida leads with an average refund of $3,852
Texas follows with $3,774
Wyoming comes next with $3,720
Nevada and Louisiana also rank high, with $3,643 and $3,577, respectively
These amounts are all above the national average refund of $3,164. On the other hand, states in the Northeast and New England regions have refunds about 12% lower than the national average. This difference is due to various factors like income levels, tax credits, and how easily people can access tax filing help.
Louisiana also stands out because 73% of taxpayers there receive refunds, one of the highest refund rates in the country.
Where’s My Refund? Track Your Money Online
The IRS recommends using the “Where’s My Refund?” tool on their official website or the IRS2Go app to check the status of your refund. It is the quickest and easiest way to get real-time updates.
You can also use trusted tax filing platforms like TurboTax and H&R Block, which are considered some of the best tax software in 2025. These platforms also help avoid common errors and offer free help guides or paid assistance.
Tax Extension? Here’s What You Should Know
Even though the main deadline to file taxes is April 15, people who have been affected by natural disasters, such as those in California and Maine, are allowed extra time to file. If you officially request an extension, your new deadline will be October 15, 2025.
But remember — even if you get an extension to file, you must still pay any taxes owed by April 15 to avoid late payment penalties.
If you owe more than $10,000 in taxes and need help paying, the IRS also provides online payment plans that can stretch up to 72 months (6 years), making it easier to manage large tax debts.
As Tax Day 2025 arrives, the IRS is moving fast, already processing over 100 million returns and sending out billions in refunds. With higher average refund amounts and quicker digital filings, taxpayers have more reasons to be satisfied this year. Those who haven’t filed yet should act fast or request an extension.
Using tools like “Where’s My Refund?” and filing platforms like TurboTax or H&R Block can help make the process smooth and error-free. And for those who owe money, flexible payment plans are available online. Whether you’re expecting a refund or still finishing your paperwork, now’s the time to wrap it up.
