The IRS says Americans filed more tax returns in 2025 than ever, nearly 146 million. Refunds topped $275 billion, with the average just under $3,000. Federal tax officials described the season as a win, though staff shortages and delays were hard to ignore.
By early May, the IRS had accepted 145.8 million returns and processed about 143.5 million, up 1.3 percent from last year. The typical refund climbed to $2,939, giving many households some breathing room. For some, the money went straight to bills; for others, it was a bit of cash to set aside.
Officials stressed that most refunds arrived fast—within 21 days if a person filed online and used direct deposit. Still, roughly 13 million tax returns were pulled for extra review, which slowed the process for many families.
The 2025 filing season opened January 27 and ran through the April 15 filing deadline. As usual, the last two weeks before the cutoff saw the heaviest rush. Millions scrambled to finish forms and submit them in time, not wanting to owe penalties or deal with extra payment issues.
More than 95 percent of federal tax returns came in electronically. The IRS said this shift toward e-filing cut down on errors and sped up the process. But not everyone walked away with a refund. Some filers discovered they still owed federal tax after deductions were applied, meaning they had to make a payment before the return could be marked complete.
The new IRS Direct File service was rolled out in 25 states, including Oregon. Direct File gave eligible taxpayers the ability to prepare and submit a federal return at no cost. People could access the system from a desktop computer, laptop, tablet, or smartphone, with help offered in both English and Spanish. The setup lets filers input forms, import employer data, and complete both a federal return and state taxes in one sitting.
Free File also stayed in place for eligible taxpayers earning $84,000 or less. It gave users tools to prepare, review, and sign their returns online, while also helping them calculate deductions and qualify for credits. By combining IRS resources with software partners, Free File remains a good fit for people who want to file their taxes for free without paying a preparer.
Handling 143 million-plus federal tax returns meant heavy lifting. Most income tax refunds landed in bank accounts on schedule, but millions of suspended returns took weeks longer. Victims of identity theft often waited months, even more than a year, before getting their refund.
IRS officials said new systems to check forms, process data, and verify input helped keep the bulk of returns moving. Even so, with fewer staff available, the agency admitted it couldn’t always move quickly when a return needed manual review.
The IRS says 2025 went smoothly, but its workforce is shrinking, raising doubts about next year. With fewer employees, the agency may struggle to process refunds, manage taxpayer service, and keep the same pace.
For filers, the best advice is simple: prepare early, review deductions, and submit returns ahead of deadlines. Eligible taxpayers can sign in to Direct File or Free File, import employer data, and complete the process securely. Whether using a smartphone, laptop, tablet, or desktop computer, these tools give people access to services that help ensure a return is accepted and refunds are paid on time.
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