Many taxpayers are still waiting for their tax refunds from the IRS as 2025 progresses. Some individuals filed their returns as early as January, but many are left wondering whether the IRS has completed issuing all refunds for this tax season. The situation is more complex than it seems, as several factors influence the speed of refund processing.
For example, the type of return filed, whether it was submitted electronically or on paper, and the inclusion of specific credits all contribute to the timing of refunds. According to futbolete, these elements are key to understanding the delays in processing.
Why Some Refunds Are Delayed: EITC and ACTC
For most taxpayers who filed their returns online and requested direct deposit, the IRS aims to issue refunds within 21 days. However, this timeline is subject to exceptions, especially for those claiming certain credits. The Earned Income Tax Credit (EITC) and the Additional Child Tax Credit (ACTC) are key examples.
Taxpayers who claimed the EITC or ACTC are required to undergo a more thorough review to ensure the accuracy of their returns and to prevent fraud. As a result, the IRS has a built-in delay for these returns. The IRS stated:
“Refunds for EITC or ACTC returns filed electronically before February 15, 2025 began arriving in bank accounts around February 27, 2025.”
This means an additional waiting period of several weeks by design before these refunds are processed and sent out.
Paper Returns: A Slower Process
While electronic returns are generally processed faster, the situation is quite different for those who chose to mail their tax returns. For paper submissions, the IRS must manually open, scan, and input the information from each return, which significantly increases processing time.
The IRS has admitted that it is still working through paper returns received as late as July 2025. As a result, individuals who mailed their returns in June or July will likely experience delays well into the fall, possibly not receiving their refunds until August or September 2025. It’s a familiar bottleneck each year, though it remains frustrating for those affected.
Extensions and Late Filers: The Final Push
Taxpayers who filed for an extension, pushing their deadline to October 2025, are now entering the IRS processing system. For those who filed electronically with direct deposit, the wait is generally shorter, with the 21-day clock starting when the return is received. However, if a taxpayer chose to mail their extension request, their return will likely face additional delays due to the manual processing involved.
This group of taxpayers can expect their refunds to be processed later in the year, with many not receiving their money until November or December 2025.
Common Delays: Errors and IRS Backlog
Several common issues can further delay the processing of refunds. Errors such as incorrect bank account numbers, calculation mistakes, or missing forms can cause a return to be flagged for manual review. When this happens, refunds can take weeks or even months longer than expected.
The IRS is also dealing with staffing and budget constraints, which make resolving these issues even slower. As a result, minor mistakes can easily cause significant delays. The IRS warns that errors can add several weeks, or even months to the wait time. If your refund status hasn’t changed for weeks, it’s likely that your return is stuck in one of these manual review queues.
