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With just a month remaining until the April 15 deadline for the 2025 tax filing season, taxpayers across the United States may be feeling the crunch. As of March 7, 2025, new data from the Internal Revenue Service (IRS) reveals that while the total number of returns filed is lower compared to the same period last year, the average refund has seen an encouraging increase of 5.7%. These developments are highlighted in the latest IRS statistics.
Despite this optimistic news regarding refunds, it’s important to note that tax season can be a source of considerable stress. A survey conducted by Intuit Credit Karma and Qualtrics found that nearly one-third of respondents reported feeling overwhelmed to the point of wanting to cry at the thought of filing their taxes. To assist taxpayers in navigating these challenges, Yahoo Finance reached out to financial advisers for their expert tips and reminders for the 2025 tax season.
Increased Refunds on the Horizon
According to IRS data from March 1, an impressive 98.8% of tax filings have been processed, resulting in a total of $124.8 billion refunded to taxpayers. Andrew Gordon, a Tax Partner at Gordon Tax, shared insights with Yahoo Finance, noting that many clients this year are indeed receiving refunds.
Several factors may be contributing to this trend, including significant life changes that could affect tax returns. Gordon pointed out one noteworthy example: “The child tax credit is one of the most impactful deductions,” he explained. “If you had a child during the year, you could be eligible for an additional $2,000 credit, with up to $1,700 being refundable, which means it could be paid back to you directly.”
Moreover, changes to the tax code may also play a crucial role in elevating refund amounts. “The standard deduction increased this year to $14,600, which many taxpayers take advantage of instead of itemizing their deductions,” said Gordon. “In addition, tax brackets have also expanded with inflation, allowing individuals with unchanged incomes to receive larger refunds simply due to these adjustments.”
Key Takeaways for a Smooth Tax Season
As the April deadline approaches, keeping these insights in mind may help alleviate some of the anxieties associated with filing taxes. Here are a few actionable tips:
- Stay Informed: Be aware of credits and deductions you may qualify for, particularly if there have been any significant life changes in the past year.
- Maximize Deductions: Consider whether itemizing or taking the standard deduction is more beneficial for your situation.
- Plan Ahead: Organize all documents related to income, deductions, and credits early to avoid last-minute stress.
Tax seasons can be daunting, but with the right knowledge and preparation, you can navigate this period more effectively. For more information about maximizing your tax return this year, consult reliable resources or seek guidance from a tax professional.
Conclusion
The 2025 tax season may bring challenges, but understanding the landscape of refunds and potential deductions can empower you to make informed decisions. As the IRS continues processing returns, staying up-to-date with new information can help ensure a smoother filing experience.
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