IRS’ tax season may feel a bit unnecessary in the bigger scheme of things. But there is logic behind the whole tax system. It forms a fundamental part of any country’s economy and has a significant influence on the overall well-being of society. Some of this tax-related income is used to fund specific services and infrastructure.
This prevents any unnecessary debts from being incurred to cover these costs. The different types of tax contributions rendered will determine what purpose it is used for.
Some purposeful tax years
As mentioned, a lot of money is required to efficiently run a country. Emergency services, public schools, national defense, etc, are just some of the services that require funding. Income taxes in the United States account for about half of the federal revenue. Payroll taxes specifically fund items such as Medicare and Social Security. Property taxes, sales taxes, and excise taxes, in turn, cover the funding required at the local and state levels.
A prime example of tax money in action is the Federal Highway Trust Fund. This fund provides finances for road repairs and construction. Its main source of funding is derived from the fuel taxes levied. Property taxes, on the other hand, distribute their funds to the public education system. The higher the property taxes in an area, the better-funded the public school will be.
Bringing the taxes to the masses
Tax money is not only utilized to the benefit of the country, but the IRS can also, in certain situations, provide a refund to taxpayers. The IRS’s Where’s My Refund tool can keep track of the refund status. Refunds are usually issued within 21 days after filing, depending on the type of filing done. E-filing refunds are much quicker than refunds on manual returns.
For example, tax returns filed via e-filing on 21 April 2025, can expect a direct deposit refund payment approximately on the 12th of April 2025. Where a return was e-filed on 28 April 2025, the refund was paid electronically on 19 April 2025. Those individuals who have delayed their tax filing may also expect a delay in the refund payments being paid.
Gaining a monetary valuation
The obvious logic in the system seems to be that a tax return would need to be filed for any sort of payment (refund, credit, or other) to be paid back to the individual taxpayer. According to the IRS official April 25 statistics, the average refund amount for 2025 amounts to $2,945. Refund status updates are usually posted within 24 hours after filing.
Situations may also arise where the actual refund is delayed. This can even be due to simple reasons, such as human error, where the individual made a typing error on the form itself. Apart from this, if the incorrect form is used, it causes a similar issue. Outstanding tax debt is a concern. In some situations, outstanding tax debt must first be cleared, and then the difference will be refunded to the individual.
Not receiving tax refunds can send any well-meaning taxpayer’s blood pressure on the boil, but sometimes it is unnecessary. As seen above, there is usually a reasonable explanation for everything. Unless there is deliberate fraudulent activity (conducted either by the individual or a third party, or some very late filing, no significant delays should be experienced with payouts.
It is also imperative to note that the information contained on the system at the IRS for the taxpayer should be up to date. This information is utilized when electronic payments are made or a refund check is mailed to the individual’s home address. Incorrect information should be amended either electronically, in person at a local IRS office, or telephonically (where applicable). The IRS website is also jam-packed with information on how tax returns can be filed optimally.
