cbsnews.com
IRS Tax Refunds Average $3,170, Paper Checks Eliminated
The average IRS tax refund in 2025 is $3,170, up from $3,050 in 2024; however, paper checks for tax refunds and payments are being eliminated starting September 2025, impacting processing times and potentially creating challenges for some taxpayers.
- What factors can cause a taxpayer to receive a smaller refund than expected, or even owe additional taxes?
- Increased refund amounts are primarily due to inflation adjustments increasing standard deductions and tax bracket ranges. However, factors like the Net Investment Income Tax (NIIT) on investment income exceeding certain thresholds and insufficient federal withholding could lead to smaller refunds or tax balances due. The shift away from paper processing will influence refund delivery timelines.
- What is the average tax refund amount for 2025, and what significant policy change will affect refund distribution this year?
- Millions of American taxpayers are awaiting refunds averaging $3,170, up from $3,050 in 2024. However, paper checks for refunds and tax payments are being eliminated starting this September, per a presidential executive order. This change will impact refund processing times.
- How might the elimination of paper checks for tax processing affect different segments of the population and the future efficiency of tax refund distribution?
- The elimination of paper checks for tax refunds will likely accelerate the IRS's move towards digital processing, potentially improving efficiency for those using electronic filing and direct deposit. However, it may disproportionately impact taxpayers who lack digital access or literacy, causing delays or complications in obtaining their refunds. Future tax seasons will require complete digital adaptation by taxpayers.
Cognitive Concepts
Framing Bias
The article frames the tax refund process as largely positive, emphasizing the potential for larger refunds and the efficiency of the IRS. While it acknowledges potential delays and complications, the overall tone leans toward reassurance and positive expectation. This framing may downplay the stress and anxieties many taxpayers experience while waiting for their refunds.
Language Bias
The language used is generally neutral and informative, although phrases like "anxious awaiting their refunds" and "a thousand-dollar surprise" introduce a slightly emotional tone. While these are not inherently biased, they could subtly influence the reader's perception of the process. More neutral alternatives might be "anticipating their refunds" and "a significant unexpected tax liability.
Bias by Omission
The article focuses heavily on the process and timeline of tax refunds, but omits discussion of potential issues affecting specific demographic groups (e.g., low-income taxpayers, self-employed individuals). It also doesn't address the complexities faced by those with more intricate tax situations beyond basic deductions and investments. This omission might leave readers with an incomplete picture of the tax refund experience.
False Dichotomy
The article presents a somewhat simplified view of tax refund timelines, suggesting that e-filing and direct deposit are the only ways to speed up the process. While true, it neglects other factors that might influence processing speed, such as the IRS's capacity and the complexity of individual returns. This simplification could lead readers to believe that all delays are solely due to their filing method.
Sustainable Development Goals
The article discusses tax refunds and how changes in standard deductions and tax brackets due to inflation adjustments can lead to small reductions in tax for taxpayers with consistent income. This can help reduce income inequality by providing some financial relief to taxpayers, particularly those in lower income brackets who benefit more from inflation adjustments.