Many Americans are still waiting for their 2025 IRS tax refund—or were surprised to receive less than expected. Despite average refunds being slightly higher than last year, several common reasons could explain a reduced payment.
Average IRS refunds are up—but not for everyone
According to the IRS’s latest filing season statistics (week ending May 2), the average tax refund is 2.9% higher than it was in May 2024. Direct deposits have also increased by 2.5% on average.
Even with this slight improvement, many taxpayers have seen lower-than-anticipated refund amounts, leaving them confused or concerned.
Why your IRS refund may be lower than expected
The IRS attributes most discrepancies to the Treasury Offset Program (TOP), which allows the federal government to use all or part of your refund to settle certain unpaid debts.
The most common refund offsets include:
- Federal nontax debts (e.g., defaulted student loans)
- State income tax debt
- Past-due child support
- Unemployment compensation debts owed to a state (typically due to fraud or unpaid contributions)
These offsets are executed by the Bureau of the Fiscal Service (BFS) under authorization from Congress.
IRS Form 8379: What if the debt is not yours?
If you filed a joint return but your refund was reduced due to your spouse’s debt, you may be eligible to reclaim your share. To do this, you must submit IRS Form 8379 (Injured Spouse Allocation).
You can file Form 8379 in one of three ways:
- With your original return (Form 1040 or 1040-SR)
- With an amended return (Form 1040-X)
- By itself, after receiving a notice of an offset from the IRS
This allows the IRS to calculate and return the portion of the refund that rightfully belongs to the non-liable spouse.
What to do if your refund is delayed
While most refunds are issued quickly—especially via direct deposit—some may be held due to verifications or outstanding debts.
If you haven’t received your refund:
- Use the “Where’s My Refund?” tool on IRS.gov
- Wait at least 21 days after e-filing before calling the IRS
- Check if an offset notice was issued regarding your refund
Key takeaways
- Average IRS refunds are up 2.9% year-over-year, but offsets reduce many refunds.
- Common reasons for lower refunds include past-due debts owed to government agencies.
- Spouses can file Form 8379 to reclaim their portion of a joint refund offset.
- Refund delays are rare but can occur; monitor your status on IRS.gov.
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