IRS Tax Refunds 2024: Average tax refund higher than last year, number of refunds issued declines

Looks like the 2025 tax season has fared well for the US taxpayers. New data from the Internal Revenue Service (IRS) reveals that the average tax refund for the 2024 filing season has increased compared to last year, even as the total number of refunds issued slightly declined.

As of the week ending April 25, the average refund rose 3.3% year-over-year—from $2,852 in 2023 to $2,945 in 2024. However, the total amount refunded to taxpayers increased at a slower pace of 2%, growing from $260 billion to $265 billion.

Despite the increase in average refund size, the IRS issued fewer refunds overall. The number of refunds dropped by 1.3%, falling from 91.3 million to 90.2 million compared to the same period last year.

State of direct deposits refund in the US

Direct deposit remains the preferred method of receiving refunds. Nearly 84.8 million of the 90.2 million refunds were paid via direct deposit—a figure nearly unchanged from last year, rising just 0.1%. The total amount refunded through direct deposit increased 2.8% to $256 billion, with the average direct deposit refund growing 2.7% to $3,023.

In terms of filings, the IRS received over 142.5 million tax returns this season, a 0.9% increase from a year ago. The agency processed more than 140.2 million returns, marking a 1.4% year-over-year rise. Notably, more taxpayers turned to professionals this year, with 73.5 million e-filed returns prepared by tax pros—up 1.7%. Meanwhile, self-prepared e-filings reached 64.1 million, an increase of 0.9%.Earlier this year, the IRS revealed that over 1.1 million Americans have unclaimed tax refunds for the 2021 tax year. Taxpayers who did not file their 2021 federal income tax returns were given until April 15 to do so, or risk forfeiting their refunds.

According to Fox Business, IRS data also shows a 1.5% increase in the total number of processed returns, while overall tax receipts rose by 5% compared to last year.

“We are making Treasury efficient again. This isn’t just words on paper. The data backs the great work that we’re doing to make sure that the IRS works for the American people, not against them,” said Deputy Treasury Secretary and Acting IRS Commissioner Michael Faulkender in an interview with Fox Business.

He added, “Our next goal will be to usher President Trump’s tax agenda across the finish line with the unified help of both House and Senate Republicans so we can continue to put more money back into the pockets of hardworking Americans.”