The Internal Revenue Service (IRS) has released important data about this year’s tax filing season, revealing a notable trend: while refund amounts have increased, fewer taxpayers are receiving these payments.
The latest figures show the average refund has grown by 3.3% compared to last year, reaching $2,945 per person. However, the IRS issued 1.1 million fewer refunds overall, a 1.3% decline from 2024.
Direct deposit remains the preferred refund method, used in 94% of cases. Those who chose this option received an average of $3,023, a 2.7% increase over last year.
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Operational efficiency & Tax Preparation
The IRS also reported improvements in operational efficiency. To date, they have processed over 140.2 million returns, a 1.4% increase from the same period last year. Tax revenue also showed healthy growth of 5%.
Regarding tax preparation methods, the data reveals that 73.5 million taxpayers used professionals, while 64.1 million self-filed—both figures reflecting modest year-over-year increases.
The agency also noted that roughly 20,000 employees are considering early retirement offers as part of internal restructuring. Analysts recommend taxpayers carefully review their returns and consider professional guidance to maximize potential refunds this tax season.
“These results demonstrate our commitment to a more efficient tax system. We now turn our focus to implementing new tax measures that will directly benefit working families”
Michael Faulkender, IRS Commissioner
What Does This Mean for You?
If you haven’t filed your taxes yet, this data suggests you may receive a slightly larger refund, though statistically, your chances of getting one are somewhat lower than in previous years.
At Wave Tax we always recommend carefully reviewing your tax documents and considering professional advice to maximize potential benefits.
➡️ Key takeaways:
- Possible higher average refund (but not guaranteed)
- Slightly fewer taxpayers qualifying for refunds overall
- Professional guidance could help optimize your return
🔎 Tip: Double-check deductions and credits you’re eligible for before submitting.