Direct deposit and electronic filing speeds up the process
Tax refunds are showing positive signs in 2025.
Americans have received more than $102.2 billion in direct deposit tax refunds as of Feb. 21, up from around $92.8 billion at the same point in 2024 andmarking an increase of around 10%,according to the Internal Revenue Service.
The average tax refund paid via direct deposit also rose 7.1%, reaching$3,505 compared with$3,272 in 2024, the IRS said.
And the number of direct deposit refunds sent wasup 2.8% at morethan 29.1million refunds.
Bigger tax refunds can help Americans pay off debt and make everyday purchases, which can be helpful to the economy in the short term.
To get a tax refund the fastest, the IRS recommends electronic filing and choosing direct deposit.
Tax refunds typically arrive within 21 days if received through direct deposit, which requires providing a bank account number and routing number,the IRS said.
Some 54% of Americans expectto get a tax refund in 2025, according to a survey by the National Retail Federation.
The survey said 47% plan to file taxes in February, 32% in March and 22% in April.
More Americans plan to spend their tax returns on savings, paying down debt and everyday expenses than last year, the survey said.
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Posted: 2025-03-06 21:12:41
