As tax season kicks off, the Internal Revenue Service (IRS) is preparing for a busy few months ahead. With an estimated 140 million returns expected to be filed by the April 15 deadline, it’s crucial for taxpayers to stay informed about key updates regarding refunds, credits, and the IRS’s new filing tools.
Tax Season 2025 : Understanding Your Refund Timeline
For many taxpayers, one of the most important questions of the season is, “When will I get my refund?” According to the IRS, those who file their returns electronically can expect to receive their refunds within 21 days, provided there are no complications. Filing electronically is the fastest way to ensure that your return is processed quickly, and this year, the IRS is emphasizing the importance of this method to avoid delays.
If you choose to receive your refund through direct deposit, you may see your refund even sooner. Direct deposit is the quickest and most secure way to receive your refund, and the IRS strongly recommends it to ensure timely delivery.
However, if you file a paper return, the process takes longer. Paper returns can take four weeks or more to be processed, especially if there are errors or if your return requires amendments. The IRS has warned taxpayers not to rely on receiving their refund by a certain date, particularly if they are planning major purchases or paying bills that depend on the refund’s arrival.
Checking the Status of Your Refund
The IRS has updated its online tool, Where’s My Refund?, to help taxpayers check the status of their refunds. Once you e-file your return, you can check the status within 24 hours. For paper filers, it typically takes about four weeks for the tool to reflect your refund status.
To access the tool, taxpayers will need to provide the following information:
- Your Social Security number (SSN) or Individual Taxpayer Identification Number (ITIN)
- Your filing status (e.g., single, married, head of household)
- The exact refund amount you’re expecting
The IRS updates the status of your refund once daily, usually overnight. You’re encouraged to check the tool only once a day to avoid unnecessary confusion and ensure you have the most accurate and up-to-date information.
How Do Refunds Work?
Tax refunds happen when taxpayers have overpaid their taxes throughout the year. This is often due to withholding from paychecks, but it can also happen if you made estimated tax payments or qualify for tax credits. When you file your return, the IRS reviews the amount of taxes you’ve already paid and compares it to what you owe. If you’ve overpaid, you’ll receive a refund.
It’s important to note that not all refunds are the result of overpayments. Some taxpayers may qualify for refundable credits, such as the Earned Income Tax Credit (EITC) or the Child Tax Credit, even if they don’t owe additional taxes. These credits are designed to help individuals and families with lower incomes.
In general, if you’re entitled to a refund, you must file a return to claim it. If you’re unsure whether you’ve overpaid or if you qualify for certain credits, filing your tax return is the only way to get an answer.
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Eligibility for the Earned Income Tax Credit (EITC)
The EITC is one of the most widely utilized credits, and it’s available to working individuals and families with low to moderate incomes. To qualify for the EITC, you must meet specific income and investment limits. For 2025, taxpayers must have investment income below $11,600 and earnings below certain income thresholds based on their marital status and number of children.
For example, a single filer with no children must earn $18,591 or less to qualify for the EITC. However, a married couple filing jointly with three or more children can earn up to $66,819 and still be eligible. If you think you may qualify, you can use the IRS EITC Assistant tool to help determine your eligibility based on your specific circumstances.
Exploring the Child Tax Credit
The Child Credit is another significant benefit for families with children. For 2025, the credit is worth up to $2,000 per child. To qualify, the child must meet specific requirements:
- Be under 17 years old at the end of the year
- Have a Social Security Number
- Be claimed as a dependent on your return
Additionally, taxpayers must have an annual income below $200,000 ($400,000 for married couples filing jointly) to qualify for the full credit. If you earn more than this, your credit amount may be reduced.
What’s New in 2025?
This year, the IRS has expanded the federal Direct File program, allowing more payers to file their taxes directly with the agency without using third-party software. The Direct File program was previously available in just 12 states, but it’s now accessible in 25 states, making it a more viable option for those with simple situations. If you’re someone who only needs to file a W-2 and doesn’t have other complex deductions, this tool can help you file your return quickly and directly with the IRS.
In 2024, the Direct File program helped payers claim more than $90 million in refunds, underscoring its growing popularity. Payers are encouraged to explore this option if they meet the eligibility requirements.
Conclusion
As the 2025 season unfolds, it’s essential to stay informed about the various ways to file, track refunds, and qualify for credits. Electronic filing, direct deposit, and utilizing the IRS’s online tools can make your experience smoother and more efficient. Be mindful of the IRS’s updated programs, and remember that it’s never too early to start preparing for your filing.
As always, if you’re unsure about your situation, it’s a good idea to seek professional help to ensure you’re claiming the credits and deductions you’re eligible for and that your filing is accurate.