More Americans to Receive IRS Tax Refunds in the Second Half of July 2025

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More Americans to Receive IRS Tax Refunds in the Second Half of July 2025

As we move into the second half of July 2025, the Internal Revenue Service (IRS) and various state tax departments continue to process 2024 tax refunds. If you’re still waiting for your refund, here’s an update on ongoing federal and state tax distributions, common recipient profiles, and the average refund amounts based on official IRS and state data.

IRS Refunds Still Being Processed in July 2025

As of mid-July, the IRS continues issuing tax refunds, particularly for late filers who submitted paper returns near the May 16-31, 2025 deadline. If you filed a paper return between these dates, you can expect your refund between July 11 and July 25, 2025, in line with IRS processing guidelines.

For electronic filers, refunds are already being issued, as they typically fall within the 21-day e-filing processing window. This includes individuals, families, and small businesses that either overpaid their annual taxes or qualified for specific credits.

The most common credits leading to refunds include the Earned Income Tax Credit (EITC) and the Child Tax Credit (CTC).

However, some delays still occur due to issues like documentation errors, identity verification problems, or IRS capacity limitations. IRS sources also attribute ongoing delays to “budget cuts and staffing shortages” that are putting strain on the agency’s ability to process refunds swiftly.

The Average IRS Tax Refund in 2025

As of July 2025, the average federal tax refund is $2,939, up slightly from the 2024 average of $2,869. Several factors have contributed to this increase, including adjusted withholdings, tax law changes, and more taxpayers claiming credits like the EITC and CTC.

Here’s a quick comparison of average refund amounts over the years:

2025 Average Refund: $2,939

2024 Average Refund: $2,869

These changes highlight how certain adjustments in tax laws and credit eligibility have helped increase the average refund amount for many taxpayers.

States Still Distributing Refunds

While many states have completed their tax refund processes, a few continue to distribute refunds:

North Carolina: The North Carolina Department of Revenue (NCDOR) is facing paper check delays after its printing vendor abruptly closed. However, electronic filers choosing direct deposit are not affected. Paper check recipients should still expect their refunds in July, though delays are expected.

Georgia: Georgia’s revenue department began distributing surplus refunds under House Bill 112 in June 2025. These refunds apply to taxpayers who filed 2023-2024 returns by May 1, 2025 (or October 15 with extensions). Single filers will receive $250, and joint filers will receive $500. Some payments will continue into July due to ongoing processing.

Other states, like California, New Jersey, and South Carolina, are continuing with standard processing. California typically processes personal refunds within one month and business refunds in up to six months. New Jersey often experiences longer review periods for refunds involving the EITC. Taxpayers should check their state’s revenue portal for real-time updates.

What to Do If You Haven’t Received Your IRS Tax Refund

If you haven’t received your IRS refund within the expected time (21 days for e-filers, or 6+ weeks for paper filers), follow these steps:

Check the status using the IRS “Where’s My Refund?” tool on IRS.gov or the IRS2Go app.

If it shows as “issued” but you haven’t received it, wait 5 additional mailing days before taking further action.

If the refund is still missing, call the IRS refund hotline at 800-829-1954 for individuals or 800-829-4933 for businesses. Be sure to have your Social Security number, filing status, and refund amount ready.

If the check was lost or stolen, you may need to submit Form 3911 (Taxpayer Statement Regarding Refund) to request a trace.

For direct deposit filers, check your bank details to ensure they are correct. If the deposit was rejected, the IRS will mail a check to your address on file.

If the issue remains unresolved, you can contact the Taxpayer Advocate Service at 877-777-4778.

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