How much are taxpayers receiving in refunds? Here’s how to check latest update on Where's My Refund?

Tax season has begun, but early filings remain below last year’s numbers. According to data from the IRS, tax returns received and processed by the agency are down by 7.7% and 7.6%, respectively, as of February 7.

Despite this slowdown, tax refunds are steadily being issued, offering relief to millions of taxpayers.

Several factors may be influencing this year's filing trends, including confusion over tax regulations, the increased issuance of 1099-K forms, and political uncertainty in Washington.

Delays in Early Filings: What’s Causing the Slow Start?

Every tax season has its unique characteristics, but this year’s sluggish start stands out. A range of reasons could be preventing taxpayers from filing early, including:

• Social Media Misinformation – Misleading online tax advice has led some filers to believe they should wait before submitting their returns.
  
• 1099-K Forms for Gig Workers – More taxpayers are receiving 1099-K forms, requiring them to report income from side jobs or online sales. Many may be taking extra time to ensure they file correctly.
  
• Disaster-Related Extensions – Taxpayers in several states affected by federal disasters have been granted later deadlines, reducing the urgency to file immediately.
  
• Political Uncertainty – Speculation around potential tax policy changes may be causing some filers to delay their returns in anticipation of possible adjustments.
  

Despite these challenges, the IRS expects the pace of filings to pick up as the April 15 deadline approaches.

How Much Are Taxpayers Receiving in Refunds?

So far, the average tax refund for early filers is $2,065, marking an 18.6% increase from the same period last year.

This uptick may encourage more taxpayers to file in the coming weeks.

Those who file electronically and opt for direct deposit typically receive their refunds faster.

For example, a filer who submits a return on February 17 could expect their refund by February 28 if there are no issues. However, those requesting paper checks may have to wait until early March.

Taxpayers claiming the Earned Income Tax Credit (EITC) or Additional Child Tax Credit (ACTC) should anticipate further delays due to IRS verification processes.

Most of these refunds will be issued by March 3, with updates available through the IRS "Where's My Refund??" tool, as per the USA Today report.

The Impact of Political Uncertainty on Tax Filing

Some taxpayers appear hesitant to file early due to uncertainty surrounding tax policy. Discussions about tax cuts and government restructuring under the Trump administration have fueled speculation, even though changes to income tax laws for the current filing season are unlikely.

Rumors circulating online—including claims that the IRS may be abolished or that new tax breaks will apply retroactively have led some filers to postpone their submissions unnecessarily.

However, tax experts emphasize that political promises rarely translate into immediate tax law changes.

FAQs

What does the IRS do?

The Internal Revenue Service (IRS) administers and enforces U.S. federal tax laws.

What is the tax year in the USA?

The U.S. tax year runs from January 1 to December 31, covering periods such as January 1 to December 31, 2022, and January 1 to December 31, 2023.