Every penny matters, and receiving positive news from the IRS these days feels almost miraculous. Yet, that’s precisely what’s occurring this year. Millions of Americans are experiencing significant increases in their tax refunds, and who wouldn’t appreciate a bit of extra cash? April 15 marks the final day for filing taxes, signaling the end of the dreaded tax season. The Internal Revenue Service (IRS) has disclosed that tax refunds this year are marginally higher than in previous years. What’s the reason behind this, and who stands to gain? To ensure you don’t miss out on any details, we’ll share all the information below!
Who is eligible for the funds?
Primarily, those who did not request the Recovery Rebate Credit on their 2021 tax return. For these individuals, there’s still an opportunity to reclaim their funds as the agency has initiated automatic payments in such cases, allowing taxpayers to recover their money without the need for additional paperwork.
How much can these individuals receive?
With this credit, individuals may receive up to $1,400 per person, primarily targeting those who did not file their 2021 return. Reports indicate that there are still about a million people who haven’t claimed their funds (due to not requesting it). These individuals have until April 15 to claim their money, and even those with low or no income can apply if they filed a tax return that year.
What if you also overlooked claiming the EIP?
Numerous individuals also failed to claim the EIP (Economic Impact Payments) on their 2020 or 2021 returns. This payment was a kind of stimulus check provided by the government during the COVID pandemic as part of an economic relief package aimed at boosting the economy during the national health crisis.
The IRS sent three specific notices for those who did not claim it:
- Form 1444 (First EIP for the year 2020)
- Form 1444-B (2021 EIP)
- Form 1444-C (2022 EIP)
If you’re uncertain about whether you received your full payment, you can verify it through your IRS online account in the Economic Impact Payment Information section.
Current refund statistics
As of March 7, 2025, the IRS has processed 43.6 million refunds, totaling $145 billion. The average refund amount has risen by 5.7% compared to last year, reaching $3,324 per taxpayer, up from $3,145 in 2024. While a 5.7% increase may not seem substantial, it represents an appreciated boost for low-income families, particularly amid rising inflation.
What if you miss the filing deadline?
The IRS allows you to request an extension until October 15, 2025, but returns filed after that date will incur interest or penalties. Therefore, experts (including us) recommend filing as soon as possible, especially if you expect a refund, to ensure it arrives as quickly as possible.
What’s happening with the IRS?
There are growing concerns among experts and the public alike, particularly since the establishment of the Department of Government Efficiency (DOGE) has led to the cancellation of several IRS office lease agreements, resulting in restricted payments for each administrative section. All of this may lead to delays in refunds and increased stress for taxpayers. To avoid any potential delays, it’s advisable to file taxes electronically, as this allows for automatic processing. Manual processing, given the reduced office capacity and staff, will inevitably take longer.
So, don’t dread the IRS; it does bring us good news from time to time!
