Roughly 105 million Americans received tax refunds in 2024, with the average tax refund amount at $3,138, according to IRS data. Looking ahead to the current tax season, will 2025 be a more fruitful year for taxpayers? Or can we expect more of the same?
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To get some predictions about 2025 tax refunds, GOBankingRates spoke with Lisa Greene-Lewis, CPA and TurboTax expert. Here’s what she had to say.
Your 2025 Refund Will Likely Be Similar to Your 2024 Refund
If you’re hoping for a significantly fatter tax refund in 2025, you may be disappointed.
“I can’t predict what will happen with tax filers’ refunds since everyone has different tax situations, but there are no significant tax law changes in place this year to make me think there will be a shift,” Greene-Lewis said.
However, she did provide some tips for getting the largest refund possible.
“Make sure you get the refund you deserve by gathering all your documents in one place so you don’t leave out expenses that can be worth substantial deductions or credits,” she said. “Make sure to take refundable credits, like the earned income credit worth up to $7,830 for a family with three kids, if eligible. The IRS reports 1 of 5 people forget this credit.
“Make sure you have the correct Social Security numbers for kids and other dependents because they can be worth valuable deductions and credits, but you need to use the correct Social Security numbers to receive them,” Greene-Lewis continued.
She also recommended filing ASAP.
“With the average refund being more than $3,000 last tax season, tax filers should file as soon as possible so they can be first in line for their refunds when IRS e-file opens on Jan. 27,” Greene-Lewis said.
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About the Same Number of Americans Will Receive Refunds This Year
From 2023 to 2024, the number of refunds issued changed by just 0.8%. Greene-Lewis does not believe the number of Americans who receive refunds will fluctuate dramatically from 2024 to 2025 either.
“It is too early to tell, but there have not been any significant tax law changes that can change refunds,” she said.
Many Americans Will Be Using Their Refunds To Pay Bills
Greene-Lewis believes that many Americans will be putting their refunds to practical uses this year.
“In our recent survey, conducted by Talker Research on behalf of TurboTax, [we found that] respondents are planning to use their return for practical things such as putting it towards bills (46%), into their savings (43%) or even to shop for necessities, such as food, utilities or repair expenses (33%),” she said.
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This article originally appeared on GOBankingRates.com: I’m an Accountant: Here Are My Predictions for Your Tax Refund in 2025
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