2025 Tax Season Challenges: What to Expect and the Latest on Refunds

The 2025 tax season is well underway, and while some taxpayers are seeing larger refunds, others are dealing with delays, processing issues, and changing tax rules.

If you’re wondering when your refund will arrive—or why it might be smaller than expected—here’s what you need to know.

Key Challenges for the 2025 Tax Season

1. Processing Delays for Certain Returns

The IRS is still working through a backlog from previous years, and some returns—especially those with Earned Income Tax Credit (EITC) or Child Tax Credit (CTC) claims—are taking longer to process.

While most electronic filers should receive refunds within 21 days, those with additional verification steps may have to wait longer. Learn more about refund processing here.

2. New Tax Laws and Credit Adjustments

The Inflation Reduction Act and other policy changes have slightly altered tax brackets and deductions.

Some filers are seeing different refund amounts than expected, so double-check your return for accuracy. Read more on the IRS website.

3. Fewer Early Filers, But Bigger Refunds

So far, the IRS has received around 2 million fewer returns than at this time last year. However, they’ve processed 600,000 more refunds, meaning early filers are getting their money faster.

This could be a temporary trend, so if you haven’t filed yet, it’s best to do so soon.

What’s the Average Refund This Year?

The IRS reports that the average refund in 2025 is $2,169, which is over 30% lower than at the same point in 2024. If you opted for direct deposit, your refund might be even bigger—the average for electronic payments is $$2,252 .

How to Get Your Refund Faster

• File electronically and select direct deposit for the quickest processing.

• Avoid common mistakes like incorrect Social Security numbers or missing income details.

• Use the IRS “Where’s My Refund?” tool to track your payment. Check your refund status here.

Bottom Line

This tax season is proving to be a mix of wins and frustrations. While refunds are up, some taxpayers are facing delays due to verification checks and policy changes.

Filing early and accurately is still the best way to get your refund as soon as possible.

Have you received your tax refund yet? Drop a comment below and let us know how the process has been for you!

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