The annual U.S. individual income tax filing season, typically a crucial period for household financial planning, revealed notable trends in taxpayer behavior during the 2025 cycle covering March 15, 2024 through March 14, 2025.

Declining Submission Rates

The Internal Revenue Service received 70.37 million tax returns during the 2025 filing season, marking a 1.7% decrease from 2024's 71.58 million submissions. Processed returns followed a similar pattern, with 69.6 million completed (down 1.4% from 70.56 million in 2024).

Tax experts attribute this downward trend to multiple factors including economic conditions, taxpayer comprehension of tax laws, and the perceived complexity of filing procedures. Despite technological advances making e-filing more accessible, many individuals still struggle with intricate tax regulations, potentially leading to non-filing or delayed submissions.

Electronic Filing Patterns

E-filed returns decreased to 68.45 million (down 1.6% from 69.65 million), raising questions about digital adoption barriers. While generally considered more efficient, electronic filing continues to present challenges for older taxpayers and those less comfortable with technology.

Professional tax preparers submitted 34.47 million e-files (1.2% decline), while self-prepared e-files dropped 2.0% to 33.98 million . Concurrently, visits to IRS.gov plummeted 44.6% to 228.126 million, suggesting shifting information-seeking behaviors among taxpayers.

Refund Growth Contrasts Submission Trends

Despite reduced filing activity, refund statistics showed positive growth. The IRS issued 49.83 million refunds (up 1.4%) totaling $162.992 billion —a 6.7% increase from $152.767 billion in 2024. Average refund amounts rose 5.2% to $3,271 .

Direct deposit adoption continued climbing, with 48.32 million electronic refunds (1.9% increase) worth $160.919 billion (6.8% growth). The average direct deposit refund reached $3,330 , up 4.8%.

Policy Implications

These contrasting trends—declining participation but increasing refund values—highlight the complex relationship between tax policy and household economics. In an era of inflation and rising living costs, tax refunds appear to play an increasingly important role in family budgets.

Moving forward, policymakers face challenges in balancing system accessibility with compliance. Key focus areas include enhancing taxpayer engagement, improving e-filing usability, and optimizing refund distribution—particularly for populations less comfortable with digital solutions.

As economic conditions evolve, maintaining public trust in the tax system will require clear communication, technological accommodation for all taxpayer demographics, and policies that acknowledge the growing financial pressures on American households.