The Internal Revenue Service (IRS) is making progress in distributing federal tax refunds for 2025. Many taxpayers who have met their filing obligations are awaiting receipt of these funds in June. The delivery method depends on each taxpayer’s prior choice.
Tax returns are being issued via direct deposit or check mail. The tax agency is facing budget constraints and potential operational delays. It is estimated that most of those who filed taxes in May will receive their refund this month.
The faster distribution especially benefits those who used electronic filing and chose to receive their money via direct bank deposit.
Who gets paid in June (and beyond)?
Tax refunds are processed after the April deadline. The distribution schedule is tied to the filing date and method. Digital returns generally process faster than physical paper returns.
Taxpayers who filed electronically by selecting direct deposit between May 1 and 15 are expected to receive their refunds. Their refunds could materialize between May 22 and June 4. This group typically receives their funds first.
Those who also filed electronically during that period, but opted for a postal check, face later deadlines. These refunds were anticipated to arrive between May 29 and June 11. The physical transportation of the mail adds time.
Taxpayers who filed paper returns during the first half of May experienced the longest delays. Their refunds could take until July 10. The manual processing inherent in physical filings consumes more IRS resources.
The average refund for 2025 is approximately $2,939. This figure represents a slight increase compared to the previous average of $2,869. Individual amounts fluctuate widely, depending on multiple tax factors.
Generally, those who overpaid their 2024 tax obligations are eligible. The refund represents the difference between the amount withheld or paid and the final tax actually owed.
The IRS recommends using its digital “Where’s My Refund?” tool to track payment status. This portal provides updates on the receipt, approval, and submission of your return and its associated refund. It is the official method for checking your payment status.
IRS staff reductions could delay payments
The IRS recently implemented a layoff of approximately 7,000 employees. “These measures, implemented during peak tax-filing season, have raised significant concerns about potential delays in processing returns and issuing refunds,” an official explained. The reduction affects approximately 7% of the workforce.
Historically, the IRS processes digital returns and issues refunds in about 21 days. However, due to staffing cuts, this timeframe is expected to extend from four to six weeks. Paper returns may experience longer delays.
Additional tax refunds you may be able to claim if you live in this state
The Georgia Department of Revenue has begun distributing surplus tax refunds. These amounts, between $250 and $500, are being directed to eligible state taxpayers. The measure involves nearly $1.2 billion in additional funds.
In April, Governor Brian Kemp signed House Bill 112, authorizing these refunds. The General Assembly allocated part of the $16.5 billion in state reserves. It is the latest in a series of refunds and tax reductions recently approved.
Recipients must have been full residents of Georgia during 2023 and 2024. They must also have filed state tax returns for both years. Partial residents and nonresidents who filed may be eligible for partial refunds.
The amount may be reduced if you owe state obligations or if taxes paid in 2023 were less than the maximum refund. The amounts are clearly defined based on your declared marital status.
Single or married individuals filing separately will receive up to $250. Heads of household will receive up to $375. Married couples filing jointly will receive up to $500. These refunds are separate from regular tax returns.
