Approaching the tax deadline on April 15, many people are rushing to complete and file their tax returns in time. Fortunately, a sizable portion of filers can look forward to a tax refund.

As of March 21, 2025, the IRS has issued a total of 55,716,000 refunds amounting to $179.469 billion, with the average refund being $3,221.

Getting your hands on your refund promptly is likely a priority if you're expecting one. Opting for direct deposit is often the fastest way to receive your money. Setting up direct deposit for your tax refund can be done by choosing from various options, such as direct deposit into your checking or savings account, receiving a paper check, using a prepaid debit card, or opting for a mobile payment app that accepts direct deposits.

Direct deposit is typically the quickest method, particularly for those filing electronically. Most taxpayers receive their refund within 21 days, but delays may occur if there are errors in the tax return or incorrect banking details.

When selecting direct deposit, you can split your refund across up to three bank accounts. You will need to provide your account and routing numbers during the tax return process, which can be found on your checks or accessed through online banking.

While a tax refund may feel like a windfall, it's important to remember that it represents income you earned throughout the year that the IRS withheld. Planning ahead on how to utilize this money wisely is crucial. Options include bolstering your emergency fund, paying off high-interest debts to free up income, or investing for long-term financial goals like retirement or education.

FAQs on tax refunds and direct deposit cover topics such as the timeline for receiving a tax refund via direct deposit, reasons why the IRS might issue a check instead of direct deposit, and the typical timing for IRS direct deposits, which usually occur early in the morning based on the bank's processing schedule.