Thousands of taxpayers are still waiting to receive their 2025 tax refunds, despite the IRS’s usual standard of processing most electronic returns within 21 days. Various factors have contributed to these delays, including errors in returns, identity verification issues, and complications with payment methods.
Why Are Tax Refunds Delayed in 2025?
While the IRS reports that 90% of tax returns are processed within the standard timeframe, certain types of returns may take longer to process. Below are the primary reasons for these delays:
1. Errors or Incomplete Information
Errors on tax returns are one of the leading causes of delays. Incorrect Social Security numbers, mistaken calculations, and missing signatures require manual reviews and can add up to six weeks to the processing time. Ensuring that all information is accurate and complete can help prevent these delays.
2. Tax Credits (EITC & ACTC)
Returns claiming tax credits such as the Earned Income Tax Credit (EITC) or the Additional Child Tax Credit (ACTC) are subject to mandatory anti-fraud reviews. These reviews are required to verify eligibility and cross-reference data with other agencies. As a result, refunds for these claims may take up to 60 days or longer.
3. Identity Verification
Increased fraud prevention measures mean that the IRS now places a strong emphasis on identity verification. If there are discrepancies between reported income and official records, the IRS may freeze the refund until the taxpayer’s identity is confirmed. This process helps prevent fraudulent claims but can cause delays.
4. Large Refunds and Atypical Deductions
If your return includes a large refund (over $10,000) or unusual deductions, it may be flagged for additional review. This review compares your current return with your historical averages, which can add up to 45 days of waiting time, depending on the complexity.
5. Payment Method Issues
The IRS has moved away from paper checks, and as of November 2025, all payments are electronic. Errors with bank account details, such as incorrect routing numbers or closed accounts, can delay payments by up to three weeks or longer. Updating bank account information may be necessary to ensure the refund is processed correctly.
How to Check the Status of Your Refund
To track your refund, the IRS offers two primary tools:
- Where’s My Refund?: This online tool provides daily updates on the status of your refund. You’ll need to provide your Social Security number, marital status, and exact refund amount.
- IRS2Go App: Available for download, this app mirrors the functionality of the Where’s My Refund? tool and also allows you to receive push notifications.
For paper returns, the initial processing time is typically six weeks but may exceed eight weeks in some states due to processing backlogs.
State-Specific Delays
Some states are experiencing unique delays in processing refunds. In North Carolina, for example, a closure of PrintTech (the official check provider) has led to delays in 400,000 state refunds. State officials are working with banks to facilitate direct deposits and mitigate these delays.
Other Factors Contributing to Delays
At the federal level, the IRS has been dealing with an 11% cut in staff since March 2025. This reduction in workforce has increased the workload per agent by 18%, which has directly extended the wait time for processing refunds.
Additionally, while the IRS has made strides to fully transition to 100% electronic payments, 12% of taxpayers still do not have digital payment methods, according to data from the Department of the Treasury. This makes it harder to expedite refunds for those who rely on paper checks or other outdated methods.
What to Do If Your Refund is Delayed
If your refund is delayed, ensure that all the information on your tax return is correct. Use the IRS tools to track your refund status and consider contacting the IRS directly if you have not received your refund within the expected timeframe. Be aware of state-specific delays, and monitor any changes in processing methods.
By staying informed and keeping your information updated, you can help reduce delays and ensure a smoother tax refund process in the future.