
The average tax refund each year, and how tax refunds work
The average tax refund so far in 2025 is $3,221, up $140 from the average refund this time last year. Here’s how tax refunds work.
Andrea Coombes, a tax editor at Bankrate, loves to translate complex personal finance topics into understandable content that helps people live their best financial lives. She’s a Certified Financial Planner™ and over the past 25 years has worked as a financial coach, personal finance writer and editor, and volunteer tax preparer.
Her work has been published in The Wall Street Journal, USA Today, MarketWatch and many newspapers nationwide. She's been interviewed on local and national TV and radio, including NPR's All Things Considered, CBS News, NASDAQ and Marketplace.
Andrea has moderated panels on how to invest for retirement, how to use 529 college savings plans and more, and she's an experienced personal-finance speaker who has presented to groups on a variety of topics such as how to budget, improve credit, manage debt, and build savings. She's also worked as a personal financial coach and certified consumer credit counselor, helping people reach their goals. For two tax seasons, she worked a volunteer tax preparer.
The SALT deduction lets taxpayers deduct the money they spend on state and local taxes.
TaxSlayer offers low-cost tax software, even for people with complex tax situations.
H&R Block is the best bet for those who qualify for the free edition or those who want in-person expert help.
TurboTax offers comprehensive yet easy-to-follow tax filing software, but at a higher price than competitors.
The IRS is strict about what you can and can’t deduct to trim your tax bill.
Trump’s plan to eliminate taxes on Social Security benefits would help current beneficiaries, but future recipients may be hurt by the move.
If your income hits a specified level, you’re required to file a tax return.
Knowing the difference between gross and net income can help you better manage your financial situation.