Key takeaways:

• The IRS expects to process 140 million tax returns this season, with refunds typically issued within 21 days.
• The "Where's My Refund?" app and tool provide taxpayers with updates on the status of their refunds.
• Claiming certain credits may delay your refund, with specific processing rules in place.

As the IRS kicks off the 2025 tax season, the agency is gearing up to assist millions of taxpayers eager to file their returns and receive their refunds. As of January 27, the IRS is open for filing, expecting approximately 140 million returns to be submitted before the April 15 deadline. With last year's average refund hovering around $3,100, many households view this as a significant financial boost.

Taxpayers can utilize the IRS's "Where's My Refund?" tool via its website or mobile app, IRS2Go, to get updates about their refund status. After e-filing, the status can be tracked approximately 24 hours later, while paper returns require about four weeks for processing. To check their status, filers need to input their Social Security number, filing status, and expected refund amount. The updated tracker will show the stages of their return, including whether it has been received, approved, or sent.

Regarding timing, e-filers typically see refunds processed in less than 21 days. For those who filed between January 22 and January 26, the anticipated refund date is February 2. If these taxpayers encounter delays, such as filing a paper return or claiming the Earned Income Tax Credit (EITC), additional waiting time may apply. Specifically, the IRS does not process refunds for tax returns claiming EITC or Additional Child Tax Credits (ACTC) until after mid-February, with refunds expected for these on or after March 3.

While tax refunds can feel like a surprise influx of cash, financial experts stress that they often represent amounts taxpayers have overpaid throughout the year. This perspective positions refunds as a form of "tax-free loans" to the government, and in some cases, a beneficial mechanism for forced savings that can aid in achieving financial targets.

Important for taxpayers looking ahead, the IRS has updated its tax brackets for the 2025 filing season, adjusting for inflation to prevent "bracket creep." For those preparing to file, the standard deduction amounts have also been confirmed: $14,600 for single filers and $29,200 for married couples filing jointly.

To maximize efficiency during this tax season, the IRS advises early filing to avoid the rush and potential complications. Moreover, as affirmed by IRS Commissioner Daniel Werfel, “Ninety percent of taxpayers will see their refund within 21 days, and often sooner.” As the deadline approaches, it is crucial for filers to remain attentive to any IRS inquiries or requests for additional documentation that may arise as their returns are processed.

For ongoing updates and detailed information related to your tax situation, check the IRS's official website or use the "Where's My Refund?" tool at Newsweek.