Average tax refunds are up in 2025 so far, total early returns down

(NEXSTAR) – The average tax refund amount is higher than it was last year at this time, according to a batch of data released by the IRS late last week.

As of March 7, the IRS says it has paid out 43,647,000 refunds for a total of $145.063 billion, 7.2% more than at roughly the same point last year ($135.281 billion).

The average individual refund is up by 5.7% so far at $3,324 per return, compared to $3,145 in 2024. It's worth noting that these numbers can fluctuate as returns come in leading up to the deadline and may end up closer by the end of the season.

So far news of the firings of thousands of IRS workers has not led to a flood of early returns, according to IRS statistics, which show total returns down 2.1% this year. There was also a 44% year-over-year decrease in IRS.gov website visits, but it wasn't immediately clear why.

The IRS did not return Nexstar's requests for comment.

Tax experts advise clients amid DOGE-led layoffs

The leases of dozens of local IRS offices across the country have been terminated, according to the website where Elon Musk and the Department of Government Efficiency (DOGE) are listing their savings claims.

But DOGE’s savings estimates — a fraction of Musk’s $1 trillion cost-cutting goal — have not been verified and do not take into account the costs of moves and closures. The group has released no information about what they will mean for agencies.

“My initial reaction is this is just going to cause more chaos,” said Jim Simpson, an accountant in Arizona who helps low-income people file taxes and serves on an IRS panel that advocates for taxpayers. “There’s a lot of room to help with government efficiency, but it should be done surgically and not with a chainsaw.”

Simpson said he was surprised to learn that dozens of IRS offices, including local taxpayer assistance centers, were facing upcoming lease cancellations. He refers clients there to get paperwork to file returns and answer IRS inquiries, and he said losing services would “cause a lot of anxiety” and delay refunds.

Plans to cancel the leases at several of the IRS centers and other sites were in error and have been rescinded, according to a person with direct knowledge of the changes who spoke to the AP on the condition of anonymity in order to avoid retaliation. Those changes are not yet reflected on DOGE’s list, which only removed one and added dozens more in its latest update published Thursday.

For anyone who has yet to file, Adam Brewer, tax attorney with AB Tax Law, told Nexstar he advises that everyone file electronically, if possible.

“If you send in a paper return, at a minimum someone at the IRS has to be there to open the envelope, and we saw in the pandemic that doesn’t get done when they get really far behind,” Brewer said. “We’ve had situations where people send in payments, they never get cashed, and all of a sudden there’s additional penalties and interest.”

Taxpayers can check the status of their refunds using the IRS’ Where’s My Refund? tool and via the IRS2GO app.

The Associated Press contributed to this report.