Core Insights - Many Americans are expected to receive larger tax refunds this year due to tax cuts from a bill signed by President Trump, which included several tax breaks for 2025 [1] - The IRS will issue refunds electronically, but those without direct deposit information will face delays [2][3] Group 1: Tax Refunds and Delays - The average tax refund in 2025 was $3,167, with estimates suggesting an increase of $675 to $1,000 for this year [5] - Individuals without direct deposit will experience longer wait times for their refunds, particularly affecting low-income and older populations [4][5] - The IRS processed 93.5 million tax refunds in 2025, with only 7% issued by check, equating to approximately 6.5 million refunds [6] Group 2: Electronic Payments vs. Paper Checks - The IRS indicates that paper checks are 16 times more likely to be lost, stolen, or delayed compared to electronic payments, which are issued in less than three weeks [7] - The move towards electronic payments is seen as beneficial, as checks are considered costly, inefficient, and insecure [7]
The IRS is warning Americans some tax refunds may be put on hold for weeks. How to make sure it doesn't happen to you
Yahoo Finance·2026-02-06 11:00