As of mid-July 2025, the Internal Revenue Service (IRS) and various state revenue departments are still working on processing 2024 tax refunds. These payments are being distributed through the second half of July 2025, with some taxpayers waiting longer than usual.
In this article, we’ll explore how the federal and state refund processes are unfolding, including the types of refunds, key profiles of recipients, and the average amounts being distributed. Let’s take a look at the ongoing tax refund activity.
Federal Tax Refunds Still Processing
Taxpayers who have not yet received their federal tax refund are still seeing payments in July 2025, especially those who filed their returns late or used paper forms. If you filed a paper return between May 16 and May 31, 2025, expect to receive your refund between July 11 and July 25, as per IRS guidelines.
The IRS typically processes electronic tax returns within 21 days, which means those who filed early in July 2025 will also start receiving their refunds now.
These refunds are meant for individuals and families who have overpaid their taxes or qualify for certain credits, such as the Earned Income Tax Credit (EITC) and the Child Tax Credit (CTC). Small businesses with credit balances may also see refunds.
Causes of Delay in Federal Refunds
Despite the ongoing refund process, delays still occur. Common reasons include documentation errors, identity verification issues, and operational limits at the IRS.
One of the primary factors contributing to these delays is ongoing “budget cuts and staffing shortages,” which continue to put a strain on the IRS’s ability to process refunds quickly.
Average IRS Refund Amounts
As of July 2025, the average federal refund has risen slightly compared to the previous year. The IRS reports that the average refund for fiscal 2025 is $2,939, which is an increase from the 2024 average of $2,869.
Several factors contributed to this rise, including adjusted withholdings, changes in tax laws, and a greater number of taxpayers claiming refundable credits like the EITC and CTC.
State-Specific Refund Updates
North Carolina
North Carolina taxpayers are facing some delays in receiving their paper checks. The state’s revenue department (NCDOR) announced that its printing vendor unexpectedly closed on June 16, 2025, which has affected paper check distribution.
However, electronic filers who chose direct deposit are not experiencing any delays. The NCDOR refund tracker suggests that paper checks should still reach taxpayers in July, but at a slower pace than usual.
Georgia
Georgia started distributing surplus refunds in June 2025 under House Bill 112. This program applies to taxpayers who filed their 2023-2024 returns by May 1, 2025, or by October 15 with extensions.
The refunds are based on the taxpayer’s federal adjusted gross income (AGI) from 2023. Single filers will receive $250, and joint filers will receive $500. While the majority of payments were issued in June, some will arrive in July due to ongoing processing.
Other States
California, New Jersey, and South Carolina are continuing their standard refund processes. California typically processes personal refunds within a month, but business refunds can take up to six months.
New Jersey, especially for refunds related to the EITC, may require longer processing times. For real-time updates, taxpayers should check the respective state’s revenue portal.
What to Do If You Haven’t Received Your Refund
If you haven’t received your refund within the expected time, there are several steps to take:
- Check the Status: Use the “Where’s My Refund?” tool on the IRS website or the IRS2Go app to check your refund status.
- Wait a Few Extra Days: If the status shows “issued” but you still haven’t received it, wait an additional 5 days before taking further action.
- Call the IRS: If your check is missing or you need assistance, call the IRS refund hotline at 800-829-1954 for individuals or 800-829-4933 for businesses. Make sure to have your Social Security number, filing status, and exact refund amount ready.
- For Direct Deposit Issues: Verify your bank details. If the IRS cannot process a direct deposit, they will mail a check to your address on file.
- Request a Trace: If your refund check was lost or stolen, you may need to submit Form 3911 to request a trace.
While federal and state refunds are still being processed, taxpayers should remain patient and monitor the status of their refunds. If delays occur, understanding the causes and knowing the proper steps to take can help resolve the situation.
Keep in mind that with staffing shortages and operational challenges, the IRS is working hard to process refunds as efficiently as possible. Be sure to check official channels like IRS.gov and your state’s revenue portal for up-to-date information on your refund.
