Can you believe it’s already mid-July 2025? The summer heat is in full swing, vacations are happening, and tax season seems like a distant memory. But for a certain group of Americans, an unexpected financial surprise could be right around the corner.
The Internal Revenue Service (IRS) is still processing tax refunds, and some people might be receiving payments that they weren’t expecting. Let’s explore why this could be happening and who is likely to benefit from it.
Tax Paper Filers: The Wait for Refunds
While most people who filed their taxes early in the year have already received their refunds, there’s still a group of taxpayers waiting for their money. This group includes people who chose to file their tax returns on paper, rather than online.
If you mailed in your tax return between May 16 and May 31, 2025, the IRS has stated that your refund should be processed between July 11 and July 25. This timeline falls within the second half of July, so if you’re in this group, don’t be surprised if your refund arrives soon.
Why does this take so long? The reason is simple: it’s all about manual entry. Unlike electronic returns, paper returns require IRS workers to manually process every number and every form. This slower process means you’ll have to wait a little longer for your refund.
The Timeline Isn’t Guaranteed
It’s important to keep in mind that the July 11 to July 25 refund window is just an estimate, not a guarantee. Sometimes things can go wrong during the process. For example, if there’s a mistake on your tax return or if you missed a signature, your refund might be delayed.
If you mailed your return during the late-May window and haven’t received your refund by July 25, you should check your status using the IRS’s “Where’s My Refund?” tool or contact the IRS directly. While it might be frustrating, staying patient and proactive will help you stay on top of things.
Unclaimed Refunds from 2021
In another twist, millions of people still have refunds from the 2021 tax year that haven’t been claimed. Over 1.1 million Americans have left this money uncollected, and the deadline to file for these refunds was April 15, 2025.
Thousands of people rushed to file before the deadline, and now the IRS is working through that last-minute flood of claims.
However, processing these refunds takes time. Some returns require extra verification, such as income confirmation or verification of credits like the Earned Income Tax Credit (EITC). If you were part of the April 2025 rush for your 2021 refund, it’s very likely that July could be the month you finally see your payout.
When the IRS Needs More Proof
If your tax return has been flagged for additional verification, it might feel like you’re stuck in limbo. This can happen if the IRS needs to confirm your identity or if there are discrepancies in the numbers you reported, especially with credits like the EITC or the Additional Child Tax Credit (ACTC).
If the IRS notices any issues with the figures you submitted, it can cause a delay in the processing of your refund.
What normally takes 21 days could stretch into weeks or even months. So if your return faced these extra hurdles back in the spring, July is a prime time to finally see things get resolved.
State Refunds: Don’t Confuse Federal and State Payments
Now, here’s something to be cautious about: while the IRS is busy with its federal refunds, many states are sending out their own payments in July 2025.
For instance, New York is rolling out inflation relief checks, while California may be issuing middle-class tax refunds or gas stimulus payments. Other states have similar programs running.
So, if you get a deposit in your account, don’t assume it’s your federal tax refund. Double-check the details on your bank statement to ensure it’s not a state-issued payment.
Confusing a state refund with a federal one could lead to a mix-up, potentially leading you to spend money you thought was extra, but it might actually be earmarked for other bills.
While most people received their tax refunds months ago, those who filed their taxes on paper or were part of the last-minute rush for 2021 refunds are likely to see payments arrive in mid-July. However, be aware that delays can happen, especially if there are errors on your return or if the IRS needs extra verification.
Additionally, with various states issuing their own payments, it’s important not to mix up state refunds with federal ones. By staying proactive and patient, you’ll be prepared for any unexpected windfalls coming your way.
